Getting Closer or Falling Apart? Euro Area Countries After the Sovereign Debt Crisis (2024)

Bordignon, M., Gatti, N., & Onorato, M. G. (2023). Getting Closer or Falling Apart? Euro Area Countries After the Sovereign Debt Crisis. Comparative Economic Studies, 65, 191-220. https://doi.org/10.1057/s41294-022-00192-5

Bordignon, Massimo ; Gatti, Nicolo' ; Onorato, Massimiliano Gaetano. / Getting Closer or Falling Apart? Euro Area Countries After the Sovereign Debt Crisis. In: Comparative Economic Studies. 2023 ; Vol. 65. pp. 191-220.

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title = "Getting Closer or Falling Apart? Euro Area Countries After the Sovereign Debt Crisis",

abstract = "We study convergence and divergence dynamics in a sample of euro area countries by assembling an extensive dataset that contains information on public spending and policy outcomes in a variety of areas of government intervention including education, health, and civil justice from the early 1990s. We also focus on other important determinants of a country's economic performance such as the level of regulation of product and labor markets, as well as the trust in political institutions, quality of governance, and inequality. Results show that despite divergent economic growth in the euro periphery countries after the 2010-2012 sovereign debt crisis, the quality of services and level of regulation did not deteriorate or indeed improved, increasing convergence with the core euro countries. However, the euro area sovereign debt crisis dramatically worsened citizens' perceptions of quality of governance, as well as the level of social trust. This calls in question the future political viability of the EMU project and asks for reform.",

keywords = "Euro, Debt, Crisis, Trust, Reforms, Governance, Convergence, Euro, Debt, Crisis, Trust, Reforms, Governance, Convergence",

author = "Massimo Bordignon and Nicolo' Gatti and Onorato, {Massimiliano Gaetano}",

year = "2023",

doi = "10.1057/s41294-022-00192-5",

language = "English",

volume = "65",

pages = "191--220",

journal = "Comparative Economic Studies",

issn = "0888-7233",

publisher = "Palgrave Macmillan Ltd.",

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Bordignon, M, Gatti, N & Onorato, MG 2023, 'Getting Closer or Falling Apart? Euro Area Countries After the Sovereign Debt Crisis', Comparative Economic Studies, vol. 65, pp. 191-220. https://doi.org/10.1057/s41294-022-00192-5

Getting Closer or Falling Apart? Euro Area Countries After the Sovereign Debt Crisis. / Bordignon, Massimo; Gatti, Nicolo'; Onorato, Massimiliano Gaetano.
In: Comparative Economic Studies, Vol. 65, 2023, p. 191-220.

Research output: Contribution to journal › Article

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T1 - Getting Closer or Falling Apart? Euro Area Countries After the Sovereign Debt Crisis

AU - Bordignon, Massimo

AU - Gatti, Nicolo'

AU - Onorato, Massimiliano Gaetano

PY - 2023

Y1 - 2023

N2 - We study convergence and divergence dynamics in a sample of euro area countries by assembling an extensive dataset that contains information on public spending and policy outcomes in a variety of areas of government intervention including education, health, and civil justice from the early 1990s. We also focus on other important determinants of a country's economic performance such as the level of regulation of product and labor markets, as well as the trust in political institutions, quality of governance, and inequality. Results show that despite divergent economic growth in the euro periphery countries after the 2010-2012 sovereign debt crisis, the quality of services and level of regulation did not deteriorate or indeed improved, increasing convergence with the core euro countries. However, the euro area sovereign debt crisis dramatically worsened citizens' perceptions of quality of governance, as well as the level of social trust. This calls in question the future political viability of the EMU project and asks for reform.

AB - We study convergence and divergence dynamics in a sample of euro area countries by assembling an extensive dataset that contains information on public spending and policy outcomes in a variety of areas of government intervention including education, health, and civil justice from the early 1990s. We also focus on other important determinants of a country's economic performance such as the level of regulation of product and labor markets, as well as the trust in political institutions, quality of governance, and inequality. Results show that despite divergent economic growth in the euro periphery countries after the 2010-2012 sovereign debt crisis, the quality of services and level of regulation did not deteriorate or indeed improved, increasing convergence with the core euro countries. However, the euro area sovereign debt crisis dramatically worsened citizens' perceptions of quality of governance, as well as the level of social trust. This calls in question the future political viability of the EMU project and asks for reform.

KW - Euro

KW - Debt

KW - Crisis

KW - Trust

KW - Reforms

KW - Governance

KW - Convergence

KW - Euro

KW - Debt

KW - Crisis

KW - Trust

KW - Reforms

KW - Governance

KW - Convergence

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Bordignon M, Gatti N, Onorato MG. Getting Closer or Falling Apart? Euro Area Countries After the Sovereign Debt Crisis. Comparative Economic Studies. 2023;65:191-220. doi: 10.1057/s41294-022-00192-5