Vorträge des DIW Berlin

Vortrag

Selection in Unsolicited Ratings: The Case of the Sovereign Debt Market

Vortrag

The Signalling Role of Fiscal Austerity

I build a model where creditworthy countries use fiscal austerity to communicate their ability to repay sovereign debt. I show that the signalling channel is active only for high levels of asymmetric information. The model generates ceteris paribus a negative association between the amount of public information (provided by the rating agencies) and fiscal tightness. Informed by the model...

Vortrag

The Signalling Role of Fiscal Austerity

I build a model where creditworthy countries use fiscal austerity to communicate their ability to repay sovereign debt. I show that the signalling channel is active only for high levels of asymmetric information. The model generates ceteris paribus a negative association between the amount of public information (provided by the rating agencies) and fiscal tightness. Informed by the model...