Risk premium as an economic policy objective: The Spanish case

Autores/as

  • Indalecio Perez Corunna University
  • Pablo Castellanos Corunna University
  • Jose Manuel Sanchez-Santos Corunna University

DOI:

https://doi.org/10.17811/ebl.2.3.2013.94-104

Resumen

This paper tries to analyse to what extent the Spanish public debt risk premium is related with the Spanish economic fundamentals. A cointegration analysis of different economic variables (public or private debt/GDP, inflation, unemployment and borrowing capacity) from 1990 to 2012 does not allow us to confirm strongly the long term relationship between the risk premium and the referred variables. There is not enough evidence to show that premium risk is determined by Spanish economic fundamentals in the long term. Therefore, the referred spread role as an economic policy objective should be relativized since it cannot be proved that tackling the analysed economic variables could reduce the spread significantly.

Biografía del autor/a

Indalecio Perez, Corunna University

Applied Economics I Departement, PhD Student

Pablo Castellanos, Corunna University

Applied Economics I Department, Associate Professor

Jose Manuel Sanchez-Santos, Corunna University

Applied Economics I

Descargas

Publicado

2013-09-30

Cómo citar

Perez, I., Castellanos, P., & Sanchez-Santos, J. M. (2013). Risk premium as an economic policy objective: The Spanish case. Economics and Business Letters, 2(3), 94–104. https://doi.org/10.17811/ebl.2.3.2013.94-104

Número

Vol. 2 Núm. 3 (2013): September - Special Issue: Selected papers from 11th International Economic Policy Conference

Sección

Special Section

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