Change search
ReferencesLink to record
Permanent link

Direct link
Government Debt: Why Has the Government Debt Increased? An Analysis of What Factors Influence the Long-Term Interest Rate?
Karlstad University, Faculty of Economic Sciences, Communication and IT.
2013 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper analyzes what factors influence the long-term interest rate, in order to give an understanding of why the government debt has increased in EU member states. It is a statistical study of panel data analyzed by the fixed effect model. The research of the 27 EU member states is based on secondary data from the European Commission; Eurostat and EconStats. The results by the fixed effect model show that government debt, budget deficit and presidential system are significant and have a positive relationship with the long- term interest rate. The growth rate is significant, having a negative relationship with the long-term interest rate and the financial crisis did not increase the long-term interest rate. The results were not entirely consistent with theories and previous studies.

Place, publisher, year, edition, pages
Keyword [en]
European Union, Eurozone, government debt, bonds, long-term interest rate, panel data, fixed effect model
National Category
URN: urn:nbn:se:kau:diva-29051Local ID: NE:2OAI: diva2:648365
Subject / course
Available from: 2013-09-24 Created: 2013-09-15 Last updated: 2013-09-30Bibliographically approved

Open Access in DiVA

fulltext(1249 kB)688 downloads
File information
File name FULLTEXT02.pdfFile size 1249 kBChecksum SHA-512
Type fulltextMimetype application/pdf

By organisation
Faculty of Economic Sciences, Communication and IT

Search outside of DiVA

GoogleGoogle Scholar
Total: 688 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 125 hits
ReferencesLink to record
Permanent link

Direct link