Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Exploring the effects of financial and fiscal vulnerabilities on G7 economies: Evidence from SVAR analysis

Georgios, Magkonis and Tsopanakis, Andreas ORCID: https://orcid.org/0000-0002-7968-0015 2014. Exploring the effects of financial and fiscal vulnerabilities on G7 economies: Evidence from SVAR analysis. Journal of International Financial Markets, Institutions and Money 32 , pp. 343-367. 10.1016/j.intfin.2014.06.010

[thumbnail of 2014b.pdf]
Preview
PDF - Submitted Pre-Print Version
Download (1MB) | Preview

Abstract

We examine the possible interactions of the financial cycle and fiscal position for G7 economies. We employ the innovative aggregate financial and fiscal stress indexes which are able to depict the perplexed nature of modern economies. A SVAR model is developed to investigate the effects of both financial and fiscal stress on key macroeconomic variables. The results, using two different identification methods, reveal that financial and fiscal shocks affect negatively the key macroeconomic variables. Additionally, there is a weak feedback effect from a financial shock to fiscal sector and vice versa.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Uncontrolled Keywords: Financial stress; Fiscal stress; Structural VAR; G7 economies
Publisher: Elsevier
ISSN: 1042-4431
Date of Acceptance: 28 June 2014
Last Modified: 07 Nov 2023 01:55
URI: https://orca.cardiff.ac.uk/id/eprint/105785

Citation Data

Cited 21 times in Scopus. View in Scopus. Powered By Scopus® Data

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics