Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries
I revisit the popular concern over a nonlinearity or threshold in the relationship between public debt and growth employing long time series data from up to 27 countries. My empirical approach recognises that standard time series arguments for long-run equilibrium relations between integrated variab...
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| Format: | Article |
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Cambridge University Press
2017
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| Online Access: | https://eprints.nottingham.ac.uk/45965/ |
| _version_ | 1848797229393903616 |
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| author | Eberhardt, Markus |
| author_facet | Eberhardt, Markus |
| author_sort | Eberhardt, Markus |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | I revisit the popular concern over a nonlinearity or threshold in the relationship between public debt and growth employing long time series data from up to 27 countries. My empirical approach recognises that standard time series arguments for long-run equilibrium relations between integrated variables (cointegration) break down in nonlinear specifications such as those predominantly applied in the existing debt-growth literature. Adopting the novel co-summability approach my analysis overcomes these difficulties to find no evidence for a systematic long-run relationship between debt and growth in the bivariate and economic theory-based multivariate specifications popular in this literature. |
| first_indexed | 2025-11-14T20:00:33Z |
| format | Article |
| id | nottingham-45965 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:00:33Z |
| publishDate | 2017 |
| publisher | Cambridge University Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-459652020-05-04T19:07:31Z https://eprints.nottingham.ac.uk/45965/ Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries Eberhardt, Markus I revisit the popular concern over a nonlinearity or threshold in the relationship between public debt and growth employing long time series data from up to 27 countries. My empirical approach recognises that standard time series arguments for long-run equilibrium relations between integrated variables (cointegration) break down in nonlinear specifications such as those predominantly applied in the existing debt-growth literature. Adopting the novel co-summability approach my analysis overcomes these difficulties to find no evidence for a systematic long-run relationship between debt and growth in the bivariate and economic theory-based multivariate specifications popular in this literature. Cambridge University Press 2017-09-18 Article PeerReviewed Eberhardt, Markus (2017) Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries. Macroeconomic Dynamics . pp. 1-23. ISSN 1469-8056 public debt; economic growth; nonlinearity; summability and co-summability https://www.cambridge.org/core/journals/macroeconomic-dynamics/article/nonlinearities-in-the-relationship-between-debt-and-growth-no-evidence-from-over-two-centuries/6BC40BD1F48C0301D74366B65E91DD23 doi:10.1017/S1365100517000347 doi:10.1017/S1365100517000347 |
| spellingShingle | public debt; economic growth; nonlinearity; summability and co-summability Eberhardt, Markus Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries |
| title | Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries |
| title_full | Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries |
| title_fullStr | Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries |
| title_full_unstemmed | Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries |
| title_short | Nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries |
| title_sort | nonlinearities in the relationship between debt and growth: (no) evidence from over two centuries |
| topic | public debt; economic growth; nonlinearity; summability and co-summability |
| url | https://eprints.nottingham.ac.uk/45965/ https://eprints.nottingham.ac.uk/45965/ https://eprints.nottingham.ac.uk/45965/ |