01746cas a2200253 a 4500 AALejournalIMF007594 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451977516 1018-5941 BD-DhAAL BD-DhAAL Cottarelli, Carlo. The Risk Premiumon Italian Government Debt, 1976-1988 / Carlo Cottarelli, Mauro Mecagni. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper considers the behavior of the yield differential between government and nongovernment bonds in Italy between 1976 and 1988. It is shown that the trend increase of the differential observed in this period was significantly influenced by the deterioration of public finances, as reflected both by an increase in the relative supply of government with respect to nongovernment paper and by a worsening of selected default risk indicators. In addition, the effect of relative supply factors was found to be statistically more robust and quantitatively more important than the effect of risk indicators in explaining the movements of the yield differential. Mode of access: Internet Mecagni, Mauro. IMF Working Papers; Working Paper ; No. 1990/038 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/038/001.1990.issue-038-en.xml IMF e-Library