Moral hazard and bail-out in fiscal federations: Evidence for the German Länder

Kyklos

Volumn 61, Issue 3, 2008, Pages 425-446

  Heppke Falk, Kirsten H ^a   Wolff, Guntram B ^a  

^a UNIVERSITY OF PITTSBURGH   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL FLOW; DEBT; FINANCIAL MARKET; FISCAL POLICY; INTEREST RATE; INVESTMENT; MORALITY; RISK ASSESSMENT;

CENTRAL EUROPE; EURASIA; EUROPE; GERMANY;

EID: 48249090141     PISSN: 00235962     EISSN: 14676435     Source Type: Journal    
DOI: 10.1111/j.1467-6435.2008.00411.x     Document Type: Article

References (22)

1. Bayoumi, T., M. Goldstein and G. Woglom (1995). Do Credit Markets Discipline Sovereign Borrowers? Evidence from U.S. States, Journal of Money, Credit, and Banking. 27(4): 1046-1059.
2. Bernoth, K., J. von Hagen and L. Schuknecht (2004). Sovereign Risk Premia in the European Government Bond Market, ECB Working paper. 369.
3. Bernoth, K. and G.B. Wolff (forthcoming). Fool the Markets? Creative Accounting, Fiscal Transparency and Sovereign Risk Premia, Scottish Journal of Potical Economy.
4. Capeci, J. (1991). Credit Risk, Credit Ratings, and Municipal Bond Yields: A Panel Study, National Tax Journal. 44(1): 41-56.
5. Capeci, J. (1994). Local Fiscal Policies, Default Risk, and Municipal Borrowing Costs, Journal of Public Economics. 53: 73-89.
6. Codogno, L., C. Favero and A. Missale (2003). Yield Spreads on EMU Government Bonds, Economic Policy. 18(37): 503-32.
7. Corsetti, G., P. Pesenti and N. Roubini (1999). Paper Tigers? A Model of the Asian Crisis, European Economic Review. 43(4): 1211-1236.
8. Dell'Ariccia, G., I. Schnabel and J. Zettelmeyer (2006). How Do Official Bailouts Affect the Risk of Investing in Emerging Markets?, Journal of Money, Credit, and Banking. 38(7): 1689-1714.
9. Elton, E.J. and T.C. Green (1998). Tax and Liquidity Effects in Pricing Government Bonds, The Journal of Finance. 53(5): 1533-1562.
10. Favero, C. and F. Giavazzi (2004). Inflation Targeting and Debt: Lessons from Brazil?, NBER Working Paper, 10390.
11. Flemming, M.J. (2003). Measuring Treasury Market Liquidity, Federal Reserve Bank of New York Economic Policy review. 9: 83-108.
12. Gómez-Puig, M. (2006). Size Matters for Liquidity: Evidence from EMU Sovereign Yield Spreads, Economics Letters. 90: 156-162.
13. Grossman, S.J. and M.H. Miller (1988). Liquidity and Market Structure, The Journal of Finance. 43(3): 617-633.
14. Hallerberg, M. and G.B. Wolff (online first). Fiscal Institutions, Fiscal Policy and Sovereign Risk Premia in EMU, Public Choice.
15. Halstead, J.M., S. Hedge and L.S. Klein (2004). Orange County Bankruptcy: Financial Contagion in the Municipal Bond and Bank Equity Markets, The Financial Review. 39: 293-315.
16. Heppke-Falk, K. and F. Hüfner (2004). Expected Budget Deficits and Interest Rate Swap Spreads - Evidence for France, Germany and Italy, Deutsche Bundesbank Discussion paper. 2004-40.
17. Lane, T. and S. Phillips (2000). Does IMF Financing Result in Moral Hazard?, IMF working paper. 168.
18. Lemmen, J. (1999). Managing Government Default Risk in Federal States, FMG Special Paper, Financial Markets Group, London School of Economics. 116.
19. Rodden, J. (2005). And the Last Shall Be First: Federalism and Soft Budget Constraints in Germany, Mimeo.
20. Schulz, A. and G.B. Wolff (2008). The German Sub-National Government Bond Market, evolution, yield and liquidity, Deutsche Bundesbank Discussion paper 2008-6.
21. Seitz, H. (1999). Subnational Government Bailouts in Germany, ZEI Working papers, University of Bonn, B20.
22. Seitz, H. (2000). Fiscal Policy, Deficits and Politics of Subnational Governments: The Case of the German Länder, Public Choice. 102: 183-218.