Public debt and growth: heterogeneity and non-linearity

We study the long-run relationship between public debt and growth in a large panel of countries. Our analysis builds on theoretical arguments and data considerations in modelling the debt-growth relationship as heterogeneous across countries. We investigate the debt-growth nexus adopting linear and...

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Main Authors: Eberhardt, Markus, Presbitero, Andrea F.
Format: Article
Published: Elsevier 2015
Subjects:
Online Access:https://eprints.nottingham.ac.uk/29158/
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author Eberhardt, Markus
Presbitero, Andrea F.
author_facet Eberhardt, Markus
Presbitero, Andrea F.
author_sort Eberhardt, Markus
building Nottingham Research Data Repository
collection Online Access
description We study the long-run relationship between public debt and growth in a large panel of countries. Our analysis builds on theoretical arguments and data considerations in modelling the debt-growth relationship as heterogeneous across countries. We investigate the debt-growth nexus adopting linear and non-linear specifications, employing novel methods and diagnostics from the time-series literature adapted for use in the panel. We find some support for a negative relationship between public debt and long-run growth across countries, but no evidence for a similar, let alone common, debt threshold within countries.
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spelling nottingham-291582020-05-04T17:16:05Z https://eprints.nottingham.ac.uk/29158/ Public debt and growth: heterogeneity and non-linearity Eberhardt, Markus Presbitero, Andrea F. We study the long-run relationship between public debt and growth in a large panel of countries. Our analysis builds on theoretical arguments and data considerations in modelling the debt-growth relationship as heterogeneous across countries. We investigate the debt-growth nexus adopting linear and non-linear specifications, employing novel methods and diagnostics from the time-series literature adapted for use in the panel. We find some support for a negative relationship between public debt and long-run growth across countries, but no evidence for a similar, let alone common, debt threshold within countries. Elsevier 2015-09-30 Article PeerReviewed Eberhardt, Markus and Presbitero, Andrea F. (2015) Public debt and growth: heterogeneity and non-linearity. Journal of International Economics, 97 (1). pp. 45-58. ISSN 0022-1996 public debt debt threshold economic growth http://www.sciencedirect.com/science/article/pii/S0022199615000690# doi:10.1016/j.jinteco.2015.04.005 doi:10.1016/j.jinteco.2015.04.005
spellingShingle public debt
debt threshold
economic growth
Eberhardt, Markus
Presbitero, Andrea F.
Public debt and growth: heterogeneity and non-linearity
title Public debt and growth: heterogeneity and non-linearity
title_full Public debt and growth: heterogeneity and non-linearity
title_fullStr Public debt and growth: heterogeneity and non-linearity
title_full_unstemmed Public debt and growth: heterogeneity and non-linearity
title_short Public debt and growth: heterogeneity and non-linearity
title_sort public debt and growth: heterogeneity and non-linearity
topic public debt
debt threshold
economic growth
url https://eprints.nottingham.ac.uk/29158/
https://eprints.nottingham.ac.uk/29158/
https://eprints.nottingham.ac.uk/29158/