What determines the share of non-resident public debt ownership? Evidence from Euro Area countries |
| |
Authors: | João Tovar Jalles |
| |
Institution: | 1.Centre for Globalization and Governance,Nova School of Business and Economics,Lisbon,Portugal;2.UECE – Research Unit on Complexity and Economics,ISEG Technical University of Lisbon,Lisbon,Portugal |
| |
Abstract: | This paper provides, for the first time, a detailed picture of the composition of public debt by type of holder (foreign vs. domestic) and type of holding institution for a set of 7 Euro Area countries between 1991Q1 and 2015Q4. In addition, it empirically inspects the determinants of nonresident public debt ownership, accounting for both domestic and external factors and paying special attention to the global financial crisis period. Using a previously unexplored dataset and by means of panel and country-specific time series regressions, we find that improved fiscal positions, systemic stress and financial volatility, a strong business cycle position, all increase share of public debt held by non-residents. Also, a higher share of monetary and financial institutions cross-border holdings of sovereign debt issued by the other Euro Area countries was correlated with higher share of public debt held by non-residents. Finally, results are robust to outliers inspection and other sensitivity checks. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|