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...

ver descrição completa

Detalhes bibliográficos
Autores: Fernández Rodríguez, Fernando, 1954-, Gómez-Puig, Marta, Sosvilla Rivero, Simón
Formato: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2016
País:España
Recursos:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/106657
Acesso em linha:https://hdl.handle.net/2445/106657
Access Level:acceso abierto
Palavra-chave:Crisis econòmiques
Unions monetàries
Països de la Unió Europea
Mercat financer
Deute
Depressions
Monetary unions
European Union countries
Financial market
Debt
Descrição
Resumo: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.