Government debt in the euro area—Evidence from dynamic factor analysis
AbstractThis 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.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 115 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/ecolet
Government debt; Dynamic factor model; Old-age dependency ratio;
Find related papers by JEL classification:
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
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