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, 97 (1). pp. 45-58. ISSN 0022-1996

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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 > Faculty of Social Sciences > School of Economics
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Depositing User: Eberhardt, Markus
Date Deposited: 05 Aug 2015 09:57
Last Modified: 13 Oct 2017 03:34

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