Determinants of nonresident government debt ownership |
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| Authors: | António Afonso Jorge Silva |
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| Institution: | 1. Department of Economics, UECE – Research Unit on Complexity and Economics, ISEG/UL – University of Lisbon, Lisbon, Portugal;2. ISEG/UL – University of Lisbon, Lisbon, Portugal;3. Parliamentary Technical Budget Support Unit, Portuguese Parliament, Lisbon, Portugal |
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| Abstract: | We examine the determinants of nonresident government debt ownership, accounting for domestic and external factors and financial variables during the period 2000Q2–2014Q4, focussing on a small euro area open economy: Portugal. Our results show that better fiscal positions, higher systematic stress in Europe and higher shares of monetary and financial institutions (MFI) cross-border holdings of public debt, increase the share of nonresident held debt, and rising sovereign yields decrease that ratio. |
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| Keywords: | Sovereign debt central bank financial markets monetary and financial institutions Portugal |
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