6533b85cfe1ef96bd12bd355
RESEARCH PRODUCT
Determinants of Sub-Sovereign Government Ratings In Europe
Leandro García-menéndezLuisa Martí-selvaNicolas Jannone-bellotsubject
ECONOMIA APLICADAEconomic growthPublic AdministrationStrategy and Managementmedia_common.quotation_subjectPopulationPublic expenditureMultinomial ordered probitSub-sovereignsJF20-2112Debt0502 economics and businessRatingEconomicsUnemployment rateElderly peoplePopulation growthrating sub-sovereign entities multinomial ordered probit international fi nancial markets.050207 economicseducationmedia_commonSovereign stateInternational Financial MarketsEstimationeducation.field_of_study050208 finance05 social sciencesDemographic economicsPolitical institutions and public administration (General)description
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.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2017-01-01 | Transylvanian Review of Administrative Sciences |