Interest premium and external position: a time varying approach
István Kónya () and
Additional contact information
Franklin Maduko: Central European University, Economics Department
No 1829, IEHAS Discussion Papers from Institute of Economics, Centre for Economic and Regional Studies
The paper reexamines the empirical relationship between external indebtedness and the interest premium on government bonds. We use a broad sample of countries between 1980-2017 that includes advanced, emerging and less-developed economies. We show that the relationship is strongly state-dependent, and it varies both with the international financial climate, and with the level of development. Moreover, while we find some evidence for non-linearity, this is mostly driven by turbulent periods. We carry out a number of robustness exercises, which highlight issues related to sample composition, the choice of the debt measure, and the definition of crisis events.
Keywords: interest premium; net foreign assets; estimation; country panel; state dependence (search for similar items in EconPapers)
JEL-codes: F34 F41 E43 E44 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:has:discpr:1829
Access Statistics for this paper
More papers in IEHAS Discussion Papers from Institute of Economics, Centre for Economic and Regional Studies Contact information at EDIRC.
Bibliographic data for series maintained by Adrienn Foldi ().