Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/government-debt-spillovers-and-creditworthiness-in-a-federation-SqO3VSqTB6
References (53)
-
J. Sachs (1981)
The Current Account and macroeconomic Adjustment in the 1970s, 12
-
Helmut Seitz (1999)
Subnational Government Bailouts in Germany -
G. Bishop (1992)
The EC’s public debt disease: discipline with credit spreads and cure with price stability -
Y. Badu, Kenneth Daniels (1997)
AN EMPIRICAL ANALYSIS OF MUNICIPAL BOND RATINGS IN VIRGINIAStudies in Economics and Finance, 17
-
S. Borenstein, M. Zimmerman (1988)
Market Incentives for Safe Commercial Airline OperationThe American Economic Review, 78
-
G. Metcalf (1990)
Federal Taxation and the Supply of State DebtPublic Economics: Taxation
-
(1996)
Provincial credit ratings in Canada: an ordered probit analysis, -
E. Cooperman, Winson Lee, G. Wolfe (1992)
The 1985 Ohio Thrift Crisis, the FSLIC's Solvency, and Rate Contagion for Retail CDsJournal of Finance, 47
-
J. Eaton, Mark Gersovitz (1981)
Debt with Potential Repudiation: Theoretical and Empirical AnalysisThe Review of Economic Studies, 48
-
L. Lang, Renl Stulz (1992)
Contagion and competitive intra-industry effects of bankruptcy announcementsJournal of Financial Economics, 32
-
R. McKelvey, W. Zavoina (1975)
A statistical model for the analysis of ordinal level dependent variablesJournal of Mathematical Sociology, 4
-
Charles Calomiris, J. Mason (1994)
Contagion and Bank Failures During the Great Depression: The June 1932 Chicago Banking Panic -
Tamim Bayoumi, M. Goldstein, G. Woglom (1995)
Do Credit Markets Discipline Sovereign Borrowers? Evidence from the U.S. StatesJournal of Money, Credit and Banking, 27
-
(1996)
Policy overview: current account sustainability,' in Fiscal Policies and Growth in the World Economy, 3d ed -
William English (1996)
Understanding the Costs of Sovereign Default: American State Debts in the 1840'sThe American Economic Review, 86
-
H. Seitz (2000)
Subnational Bailouts in Germany -
Richard Cantor, Frank Packer (1996)
Determinants and Impact of Sovereign Credit Ratings, 6
-
Neil Bruce (1995)
A Fiscal Federalism Analysis of Debt Policies by Sovereign Regional GovernmentsCanadian Journal of Economics, 28
-
Sangkyu Park (1991)
Bank failure contagion in historical perspectiveJournal of Monetary Economics, 28
-
Charles Wyplosz (1997)
EMU: Why and How It Might HappenJournal of Economic Perspectives, 11
-
Barry Eichengreen, Tamim Bayoumi (1994)
The political economy of fiscal restrictions: Implications for Europe from the United StatesEuropean Economic Review, 38
-
Jeremy Bulow, Kenneth Rogoff (1988)
Sovereign Debt: is to Forgive to Forget?International Finance
-
(1997)
Econometric Analysis, 3d ed. (Upper Saddle River, NJ: Prentice-Hall -
(1997)
Control of subnational government borrowing,' in Fiscal Federalism in Theory and Practice, ed -
Bulent Uyar, D. Escarraz (1995)
Rank order analysis of state general obligation bond ratingsJournal of Economics and Finance, 19
-
M. Goldstein, G. Woglom (1991)
Market-Based Fiscal Discipline in Monetary Unions, 91
-
R. Davidson, J. MacKinnon (1994)
Estimation and inference in econometrics -
Nadeem Haque, Nelson Mark, Donald Mathieson (1996)
The Economic Content of Indicators of Developing Country CreditworthinessInternational Monetary Fund (IMF) Research Paper Series
-
T. Ter-Minassian (1997)
Fiscal Federalism in Theory and Practice -
Gershon Feder, R. Just (1977)
An Analysis of Credit Terms in the Eurodollar MarketEuropean Economic Review, 9
-
A. Bovenberg, J. Kremers, Paul Masson (1990)
Economic and Monetary Union in Europe and Constraints on National Budgetary PoliciesPublic Economics: National Budget
-
R. Shiller (1995)
Conversation, Information, and Herd BehaviorThe American Economic Review, 85
-
(1996)
Contagious Currency Crises -
G. Jarrell, S. Peltzman (1985)
The Impact of Product Recalls on the Wealth of SellersJournal of Political Economy, 93
-
A. Case (1993)
Interstate tax competition after TRA86Journal of Policy Analysis and Management, 12
-
John Capeci (1991)
CREDIT RISK, CREDIT RATINGS, AND MUNICIPAL BOND YIELDS: A PANEL STUDYNational Tax Journal, 44
-
(1997)
The impact of fiscal policy on the risk premium of government long-term debt: some Canadian evidence, -
J. Tirole (1996)
A Theory of Collective Reputations (with applications to the persistence of corruption and to firm quality)The Review of Economic Studies, 63
-
S. Lee (1993)
Are the credit ratings assigned by bankers based on the willingness of LDC borrowers to repayJournal of Development Economics, 40
-
Barry Eichengreen (1987)
Til Debt Do Us Part: the U.S. Capital Market and Foreign Lending, 1920-1955Monetary Economics
-
Andrei Shleifer (1985)
A Theory of Yardstick CompetitionThe RAND Journal of Economics, 16
-
R. Beetsma, H. Uhlig (1999)
An Analysis of the Stability and Growth PactThe Economic Journal, 109
-
Avi Ben-Bassat, D. Gottlieb (1992)
Optimal international reserves and sovereign riskJournal of International Economics, 33
-
S. Edwards (1983)
Ldc&Apos;S Foreign Borrowing and Default Risk: an Empirical InvestigationNBER Working Paper Series
-
J. Hausman, A. Lo, A. Mackinlay (1991)
An Ordered Probit Analysis of Transaction Stock PricesCapital Markets: Asset Pricing & Valuation
-
Pu Liu, A. Thakor (1984)
Interest Yields, Credit Ratings, and Economic Characteristics of State Bonds: An Empirical Analysis: A NoteJournal of Money, Credit and Banking, 16
-
Choon-Geol Moon, J. Stotsky (1993)
Testing the Differences between the Determinants of Moody's and Standard & Poor's Ratings: An Application of Smooth Simulated Maximum Likelihood EstimationJournal of Applied Econometrics, 8
-
A. Pagan, F. Vella (1989)
Diagnostic Tests for Models Based on Individual Data: A Survey.Journal of the ACM
-
Gershon Feder, L. Uy (1985)
The determinants of international creditworthiness and their policy implicationsJournal of Policy Modeling, 7
-
P. Lindert, Peter Morton (1989)
How Sovereign Debt Has Worked -
J. Eaton (1990)
Sovereign Debt, Reputation, and Credit TermsERN: Debt; Debt Management (Topic)
-
W. Becker, Peter Kennedy (1992)
A Graphical Exposition of the Ordered ProbitEconometric Theory, 8
-
G. Woglom (1991)
Market-Based Fiscal Discipline in Monetary Unions: Evidence from the U.S. Municipal Bond MarketRisk Management
- Publisher
- Wiley
- Copyright
- Copyright © 2000 Wiley Subscription Services, Inc., A Wiley Company
- ISSN
- 0008-4085
- eISSN
- 1540-5982
- DOI
- 10.1111/0008-4085.00034
- Publisher site
- See Article on Publisher Site
Abstract
Estimates are presented for the impact of debt accumulation by the central and subcentral governments of a federation on the creditworthiness of other federation member governments. The estimates, calculated using an ordered probit model and Canadian provincial data, indicate that debt accumulation by the central government has reduced the creditworthiness of indebted provincial governments. Interprovincial debt accumulation effects are negative but relatively small, except for the debt of the largest province, which has a strong positive effect on the creditworthiness of the other provinces. These findings may have implications for other federations and associated jurisdictions, such as the European Union. JEL Classification: H63, F36
Journal
Canadian Journal of Economics/Revue Canadienne D'économique – Wiley
Published: Aug 1, 2000