Government debt in the euro area—Evidence from dynamic factor analysis

Huiran Pan and Chun Wang ()

Economics Letters, 2012, vol. 115, issue 2, 272-275

Abstract: This paper shows that an unobserved common factor drives the co-movement of government debt in the euro area. The old-age dependency ratio explains the factor after controlling for the Maastricht Treaty, the adoption of the euro, and the ongoing crisis.

Keywords: Government debt; Dynamic factor model; Old-age dependency ratio (search for similar items in EconPapers)
JEL-codes: C33 H63 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:115:y:2012:i:2:p:272-275

DOI: 10.1016/j.econlet.2011.12.084

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