Relationship between Government Bond Yield Spread and Fiscal Fundamentals in Selected EU Countries
Relationship between Government Bond Yield Spread and Fiscal Fundamentals in Selected EU Countries

Author(s): Irena Szarowská
Subject(s): National Economy, Government/Political systems, Political economy, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: government bond yield; debt; budget balance; GDP growth; fiscal discipline;
Summary/Abstract: This paper investigates relationship between government bond yield spread and fiscal fundamentals in selected European Union member states in the period 1995-2012. The aim of the paper is to examine impact of GDP growth, budget balance, debt and the fiscal rules index on government bond yield spread. The empirical evidence is based on unbalanced annual panel data of 15 EU countries (time span is divided into a pre-crisis and a post-crisis period), data are taken from Eurostat and OECD database.

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