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Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. AbstractIn this paper we assess the effectiveness of large scale bailouts aiming at preventing a financial crisis from further propagating into a systemic risk. We examine the structural changes in the relationship between the sovereign and financial institutions' credit default swap spreads during the European sovereign debt crisis. Before the first Greek bailout by the EFSF, the sovereign and financial sectors exhibit a two-way feedback effect for both the short and the long runs. Crucially, we find that after the first Greek bailout, shocks in the financial sector either exert significantly negative impacts or lose influences on the sovereign sector. In contrast, all the later bailouts by the EFSF (the second Greek bailout, Irish and Portugal bailouts) do not show this pattern change in the two-way risk transfer relationship.

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Purpose COVID-19 is still showing a tendency of spreading around the world. In order to improve the subsequent control of COVID-19, it is essential to conduct a study on measuring and predicting the scale of the outbreak in the future. Methods This paper uses rolling mechanism and grid search to find the best fractional order of Fractional Order Accumulation Grey Model (FGM). Buffer level is proposed based on the general form of weakening buffer operator to measure the effect of government control measurements on the epidemic. And the buffer level is associated with the Government Response Stringency index and the Mobility Index. Results Firstly, the model proposed in this paper dominates the ARIMA model which has been widely used in predicting the confirmed COVID-19 cases. Secondly, in the process of using the buffer level to modify the FGM, this paper finds that government measurements require the active cooperation of the public and often have a time lag when they are effective. Only when government increase its stringency and the public observe the order can the spread of COVID-19 be slowed down. If there is only the controlling measure and the public does not react actively, it will not slow down the epidemic. Thirdly, according to the Mobility Index and Government Response Stringency Index in December, this paper predicts the cumulative confirmed cases of the end of January in different scenarios according to different buffer levels. The study suggests that the world should continue to maintain high vigilance and take corresponding control measures for the outbreak of COVID-19. Conclusions Government’s control measures and public’s abidance are both important in this battle with COVID-19. Governments control measures have time-lag effect and the time lag is about 9 days. When the government increases its stringency and the public cooperates with the government, we must consider the weaken buffer operator with proper buffer level in the prediction process. These prediction methods can be considered in the prediction of COVID-19 confirmed cases in the future or the trend of other epidemics.