IDEAS home Printed from https://ideas.repec.org/a/spr/lsprsc/v17y2024i1d10.1007_s12076-024-00376-w.html
   My bibliography  Save this article

Convergence behavior of sovereign bond yields in the EU and COVID-19 government responses

Author

Listed:
  • Christina Christou

    (Open University of Cyprus)

  • Konstantinos Eleftheriou

    (University of Piraeus)

  • Patroklos Patsoulis

    (Neapolis University Pafos)

Abstract

This paper aims to investigate the convergence pattern of sovereign bond yields in European Union (EU) countries during the Covid-19 pandemic. To this purpose we employ the Phillips and Sul convergence methodology. We further test whether the above pattern was affected by the intensity of government responses against the Covid-19 dispersion. Our findings indicate the existence of two convergence clubs. Both clubs are composed of countries that have previously been classified as either ‘core’ or ‘periphery’ countries, indicating that in this particular health crisis, this classification is too simplistic. Moreover, our results suggest that the intensity of Covid-19 containment policies had little to no effect in shaping the convergence pattern of sovereign bond yields in the EU. These conclusions are robust even after accounting for the size of the fiscal sector of each country.

Suggested Citation

  • Christina Christou & Konstantinos Eleftheriou & Patroklos Patsoulis, 2024. "Convergence behavior of sovereign bond yields in the EU and COVID-19 government responses," Letters in Spatial and Resource Sciences, Springer, vol. 17(1), pages 1-16, December.
    • Handle: RePEc:spr:lsprsc:v:17:y:2024:i:1:d:10.1007_s12076-024-00376-w
    DOI: 10.1007/s12076-024-00376-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12076-024-00376-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12076-024-00376-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Bond yields; Convergence; Covid-19; EU; Government responses;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lsprsc:v:17:y:2024:i:1:d:10.1007_s12076-024-00376-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.