Analysis of the seeds of the debt crisis in Europe

Basit Öğe Kaydı
dc.authoridYener, Haluk/0000-0003-2654-5810
dc.authorwosidYazgan, Ege/GPG-1135-2022
dc.authorwosidYener, Haluk/AAG-5885-2019
dc.contributor.authorYener, Haluk
dc.contributor.authorStengos, Thanasis
dc.contributor.authorYazgan, M. Ege
dc.date.accessioned2024-07-18T20:45:14Z
dc.date.available2024-07-18T20:45:14Z
dc.date.issued2017
dc.departmentİstanbul Bilgi Üniversitesien_US
dc.description.abstractThis paper presents an analysis of the seeds of the recent debt crisis that occurred in the Eurozone area using a variant of Fleming and Stein [2004. Stochastic Optimal Control, International Finance and Debt. Journal of Banking and Finance, 28: 979-996] model. This model has two risk drivers arising from uncertainties in the return on capital and the effective rate of return on net foreign assets. Given the risk drivers, we model the net worth value process of an economy under a stochastic setting and show that opening to the rest of the world by pursuing the growth maximizing leverage strategy is better than remaining closed, as that strategy enhances the growth of the net worth process. Second, we provide an extra condition to show when the excessive leverage poses a threat to the sustainable growth of an economy. In this way, we improve the model introduced by Fleming and Stein as a signal of possible debt crises. Finally, we conduct an econometric analysis for the group of countries considered under this study, and show that there is a long-run relationship between the capital stock and the total external debt justifying the use of the structural model we employ.en_US
dc.identifier.doi10.1080/1351847X.2016.1272474
dc.identifier.endpage1610en_US
dc.identifier.issn1351-847X
dc.identifier.issn1466-4364
dc.identifier.issue15en_US
dc.identifier.scopus2-s2.0-85009740631en_US
dc.identifier.scopusqualityQ1en_US
dc.identifier.startpage1589en_US
dc.identifier.urihttps://doi.org/10.1080/1351847X.2016.1272474
dc.identifier.urihttps://hdl.handle.net/11411/7470
dc.identifier.volume23en_US
dc.identifier.wosWOS:000423186900006en_US
dc.identifier.wosqualityQ3en_US
dc.indekslendigikaynakWeb of Scienceen_US
dc.indekslendigikaynakScopusen_US
dc.language.isoenen_US
dc.publisherRoutledge Journals, Taylor & Francis Ltden_US
dc.relation.ispartofEuropean Journal of Financeen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectForeign Debten_US
dc.subjectSustainable Growthen_US
dc.subjectDebt Crisesen_US
dc.subjectGrowth Maximizationen_US
dc.subjectİnternational Financeen_US
dc.subjectCurrent Account Deficiten_US
dc.subjectStochastic Optimal-Controlen_US
dc.subjectGrowthen_US
dc.subjectTimeen_US
dc.titleAnalysis of the seeds of the debt crisis in Europeen_US
dc.typeArticleen_US

Dosyalar

Koleksiyon

Web of Science Indexed Publications
Scopus Indexed Publications