Using connectedness analysis to assess financial stress transmission in EMU sovereign bond market volatility

We measure the connectedness in EMU sovereign market volatility between April 1999 and January 2014, monitoring stress transmission and identifing episodes of intensive spillovers from one country to the others. We first perform a static and dynamic analysis to measure the total volatility connected...

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Detalles Bibliográficos
Autores: Fernández Rodríguez, Fernando, 1954-, Gómez-Puig, Marta, Sosvilla Rivero, Simón
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2016
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:2445/106657
Acceso en línea:https://hdl.handle.net/2445/106657
Access Level:acceso abierto
Palabra clave:Crisis econòmiques
Unions monetàries
Països de la Unió Europea
Mercat financer
Deute
Depressions
Monetary unions
European Union countries
Financial market
Debt
Descripción
Sumario:We measure the connectedness in EMU sovereign market volatility between April 1999 and January 2014, monitoring stress transmission and identifing episodes of intensive spillovers from one country to the others. We first perform a static and dynamic analysis to measure the total volatility connectedness in the entire period using a framework recently proposed by Diebold and Yilmaz (2014). Second, we use a dynamic analysis to evaluate the net directional connectedness for each country and apply panel model techniques to investigate its determinants. Finally, we examine the time-varying behaviour of net pair-wise directional connectedness at different stages of the recent sovereign debt crisis.