Rankings In The Euro Zone Based On Macroeconomic Information

Abstract

One consequence of the Great Recession that began in 2008 has been the sovereign debt crisis within the European Monetary Union (EMU) and the increasing risk premium associated with government debt of "peripheral" countries (primarily, Greece, Ireland, Portugal and Spain). Firstly, this paper analyses what macroeconomic variables are more related with the evolution of the risk premium, using panel data estimation. Secondly, we also try to sort the countries belonging to the monetary union in terms of their likelihood of experiencing an increase in the risk premium. To this purpose, we use discrete multicriteria decision aid methods.