Interest premium and external position: A time varying approach

Arbeitspapier

The paper reexamines the empirical relationship between external indebtedness and the interest premium on government bonds. We use a broad sample of countries between 1980-2017 that includes advanced, emerging and less-developed economies. We show that the relationship is strongly state-dependent, and it varies both with the international financial climate, and with the level of development. Moreover, while we find some evidence for non-linearity, this is mostly driven by turbulent periods. We carry out a number of robustness exercises, which highlight issues related to sample composition, the choice of the debt measure, and the definition of crisis events.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IEHAS Discussion Papers ; No. MT-DP - 2018/29

Klassifikation und Themen

• Klassifikation: Wirtschaft ; International Lending and Debt Problems ; Open Economy Macroeconomics ; Interest Rates: Determination, Term Structure, and Effects ; Financial Markets and the Macroeconomy
• Thema: interest premium ; net foreign assets ; estimation ; country panel ; state dependence

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kónya, István ; Maduko, Franklin
• Ereignis: Veröffentlichung
• (wer): Hungarian Academy of Sciences, Institute of Economics
• (wo): Budapest
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/222042
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ