Public debt and growth: heterogeneity and non-linearity

Eberhardt, Markus and Presbitero, Andrea F. (2015) Public debt and growth: heterogeneity and non-linearity. Journal of International Economics . ISSN 0022-1996 (In Press)

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Abstract

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.

Item Type: Article
Keywords: public debt, debt threshold, economic growth
Schools/Departments: University of Nottingham UK Campus > Faculty of Social Sciences > School of Economics
Identification Number: https://doi.org/10.1016/j.jinteco.2015.04.005
Related URLs:
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http://www.sciencedirect.com/science/MiamiMultiMediaURL/1-s2.0-S0022199615000690/1-s2.0-S0022199615000690-mmc1.pdf/271695/html/S0022199615000690/3a1ffa20b5ea2cc05809246c068b8052/mmc1.pdfUNSPECIFIED
Depositing User: Eberhardt, Markus
Date Deposited: 05 Aug 2015 09:57
Last Modified: 13 Sep 2016 11:51
URI: http://eprints.nottingham.ac.uk/id/eprint/29158

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