Arbeitspapier
The Political Determinants of Government Bond Holdings
This paper analyzes the link between political factors and sovereign bond holdings of US investors in 60 countries over the 2003-2013 period. We find that, in general, US investors hold more bonds in countries with few political constraints on the government. Moreover, US investors respond to increased uncertainty around major elections by reducing government bond holdings. These effects are particularly significant in democratic regimes and countries with sound institutions, which enable effective implementation of fiscal consolidation measures or economic reforms.
- Language
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Englisch
- Bibliographic citation
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Series: IWH Discussion Papers ; No. 14/2016
- Classification
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Wirtschaft
Portfolio Choice; Investment Decisions
International Financial Markets
General Financial Markets: Government Policy and Regulation
Structure, Scope, and Performance of Government
National Debt; Debt Management; Sovereign Debt
- Subject
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government bond portfolio
political factors
Treasury International Capital data
PPML
- Event
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Geistige Schöpfung
- (who)
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Eichler, Stefan
Plaga, Timo
- Event
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Veröffentlichung
- (who)
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Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
- (where)
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Halle (Saale)
- (when)
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2016
- Handle
- URN
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urn:nbn:de:gbv:3:2-54619
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Eichler, Stefan
- Plaga, Timo
- Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
Time of origin
- 2016