Fool the markets? Creative accounting, fiscal transparency and sovereign risk premia
Kerstin Bernoth, Guntram Wolff
We investigate the effects of official fiscal data and creative accounting signals on interest rate spreads between bond yields in the European Union. Our model predicts that risk premia contained in...
Foreign Direct Investment in the Enlarged EU: Do Taxes Matter and to What Extent?
Foreign direct investment is of increasing importance in the European Union. This paper estimates the effect of taxes on foreign direct investment (FDI) flows and on three sub-components of these...
Von Hagen, Jürgen, Wolff, Guntram
Fiscal rules, such as the excessive deficit procedure and the stability and growth pact (SGP), aim at constraining government behaviour. Milesi-Ferretti (2003) develops a model in which governments...
Fiscal institutions, fiscal policy and sovereign risk premia in EMU
Mark Hallerberg, Guntram Wolff
Budget institutions, Fiscal rules, Sovereign risk premia, EMU, Fiscal policy, E43, E62, H61, H62, G12, G15,