Determinants of Sub-Sovereign Government Ratings In Europe
<p>The aim of this paper is to identify the determinantsof the rating assigned to sub-sovereignentities in Germany, Austria, Belgium, France,Italy and Spain, using a total of 92 territorial entitiesfor the 1989-2012 period. Multinomial orderedprobit estimation models were estimatedfor each spe...
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| Format: | Article |
| Language: | English |
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Babes-Bolyai University, Cluj-Napoca
2017-02-01
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| Series: | Transylvanian Review of Administrative Sciences |
| Subjects: | |
| Online Access: | https://rtsa.ro/tras/index.php/tras/article/view/514 |
| _version_ | 1797262644054327296 |
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| author | Nicolas JANNONE-BELLOT Luisa MARTÍ-SELVA Leandro GARCÍA-MENÉNDEZ |
| author_facet | Nicolas JANNONE-BELLOT Luisa MARTÍ-SELVA Leandro GARCÍA-MENÉNDEZ |
| author_sort | Nicolas JANNONE-BELLOT |
| collection | DOAJ |
| description | <p>The aim of this paper is to identify the determinantsof the rating assigned to sub-sovereignentities in Germany, Austria, Belgium, France,Italy and Spain, using a total of 92 territorial entitiesfor the 1989-2012 period. Multinomial orderedprobit estimation models were estimatedfor each specifi cation and agency.We conclude that the country’s rating is oneof the most important determinants of regionalgovernment’s ratings with a positive infl uence(as expected), and that the country debt/GDPratio is a stronger determinant for regions thantheir own indebtedness with a negative sign.Other relevant variables are population growthrate, unemployment rate, elderly people weight,regional public expenditure weight and size. Additionally,economic variables, such as country’srating and population growth are more importantto Fitch; whereas budget variables and size variablesare more relevant to Moody’s. Debt variablesand elderly people ratio are more importantto S&P.</p> |
| first_indexed | 2024-03-11T11:47:16Z |
| format | Article |
| id | doaj.art-646b5919aa5f46f8908df61867a3b57c |
| institution | Directory Open Access Journal |
| issn | 1842-2845 |
| language | English |
| last_indexed | 2024-04-25T00:00:23Z |
| publishDate | 2017-02-01 |
| publisher | Babes-Bolyai University, Cluj-Napoca |
| record_format | Article |
| series | Transylvanian Review of Administrative Sciences |
| spelling | doaj.art-646b5919aa5f46f8908df61867a3b57c2024-03-14T07:28:37ZengBabes-Bolyai University, Cluj-NapocaTransylvanian Review of Administrative Sciences1842-28452017-02-01135011012610.24193/tras.2017.0007531Determinants of Sub-Sovereign Government Ratings In EuropeNicolas JANNONE-BELLOT0Luisa MARTÍ-SELVA1Leandro GARCÍA-MENÉNDEZ2Secretary General of the Treasury and Financial Policy, Ministry of Economy, Industry and Competitiveness, Madrid, SpainProfessor, Department of Social Science and Economics, Faculty of Business Administration and Management, Technical University of Valencia, Valencia, SpainProfessor, Department of Applied Economics II, Faculty of Economy, University of Valencia, Valencia, Spain<p>The aim of this paper is to identify the determinantsof the rating assigned to sub-sovereignentities in Germany, Austria, Belgium, France,Italy and Spain, using a total of 92 territorial entitiesfor the 1989-2012 period. Multinomial orderedprobit estimation models were estimatedfor each specifi cation and agency.We conclude that the country’s rating is oneof the most important determinants of regionalgovernment’s ratings with a positive infl uence(as expected), and that the country debt/GDPratio is a stronger determinant for regions thantheir own indebtedness with a negative sign.Other relevant variables are population growthrate, unemployment rate, elderly people weight,regional public expenditure weight and size. Additionally,economic variables, such as country’srating and population growth are more importantto Fitch; whereas budget variables and size variablesare more relevant to Moody’s. Debt variablesand elderly people ratio are more importantto S&P.</p>https://rtsa.ro/tras/index.php/tras/article/view/514rating, sub-sovereign entities, multinomial ordered probit, international fi nancial markets. |
| spellingShingle | Nicolas JANNONE-BELLOT Luisa MARTÍ-SELVA Leandro GARCÍA-MENÉNDEZ Determinants of Sub-Sovereign Government Ratings In Europe Transylvanian Review of Administrative Sciences rating, sub-sovereign entities, multinomial ordered probit, international fi nancial markets. |
| title | Determinants of Sub-Sovereign Government Ratings In Europe |
| title_full | Determinants of Sub-Sovereign Government Ratings In Europe |
| title_fullStr | Determinants of Sub-Sovereign Government Ratings In Europe |
| title_full_unstemmed | Determinants of Sub-Sovereign Government Ratings In Europe |
| title_short | Determinants of Sub-Sovereign Government Ratings In Europe |
| title_sort | determinants of sub sovereign government ratings in europe |
| topic | rating, sub-sovereign entities, multinomial ordered probit, international fi nancial markets. |
| url | https://rtsa.ro/tras/index.php/tras/article/view/514 |
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