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Findings on Economic Modelling Described by L. Ureche-Rangau and Colleagues

February 14, 2014

By a News Reporter-Staff News Editor at Economics Week -- Investigators publish new report on Economic Modelling. According to news reporting originating in Lille, France , by VerticalNews journalists, research stated, "This article explores the link between the subprime crisis and the European sovereign debt crisis. Using a panel data approach, we estimate the impact of the different government interventions aimed at rescuing financial institutions on the significant increase of the costs of public debts as measured by the interest rate spreads with respect to Germany ." The news reporters obtained a quote from the research, "We show evidence on the existence of a statistically significant link between the two crises embodied by capital injections and government guarantees. More specifically, the two types of government interventions have a negative impact on the cost of the sovereign debts under study." According to the news reporters, the research concluded: "This empirical result can explain why the sovereign debt crisis immediately followed the subprime crisis." For more information on this research see: One crisis, two crises ... the subprime crisis and the European sovereign debt problems. Economic Modelling , 2013;35():35-44. Economic Modelling can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands . ( Elsevier - www.elsevier.com ; Economic Modelling - www.elsevier.com/wps/product/cws_home/30411 ) Our news correspondents report that additional information may be obtained by contacting L. Ureche-Rangau, IESEG Sch Management, Dept. of Finance , F-59000 Lille, France . Keywords for this news article include: Lille, France , Europe , Economic Modelling Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Economics Week


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