Duygun, M., Ozturk, H. and Shaban, M. orcid.org/0000-0002-6939-113X (2016) The role of sovereign credit ratings in fiscal discipline. Emerging Markets Review, 27. pp. 197-216. ISSN 1566-0141
Abstract
This paper investigates several aspects of the relationship between sovereign credit ratings and fiscal discipline. The analysis of over one thousand country-year observations for 93 countries during the 1999-2010 period reveals that a country's debt level is likely to increase with higher ratings, confirming the existence of pro-cyclicality and path dependence of ratings. In addition, the study finds no evidence to support the theory of Political Business Cycle, which implies that political ambitions may lead to fiscal worsening following a rating upgrade. The study findings further demonstrate that institutional quality is an important factor in the ratings-fiscal discipline nexus.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2016 Elsevier. This is an author produced version of a paper subsequently published in Emerging Markets Review. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/) |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 23 Jun 2016 15:19 |
Last Modified: | 24 May 2017 00:38 |
Published Version: | https://dx.doi.org/10.1016/j.ememar.2016.05.002 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.ememar.2016.05.002 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:101212 |