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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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
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 |
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| Summary: | <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> |
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| ISSN: | 1842-2845 |