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Public debt and growth: heterogeneity and non-linearity

Eberhardt, Markus; Presbitero, Andrea F.

Authors

Andrea F. Presbitero apresbitero@imf.org



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.

Citation

Eberhardt, M., & Presbitero, A. F. (2015). Public debt and growth: heterogeneity and non-linearity. Journal of International Economics, 97(1), https://doi.org/10.1016/j.jinteco.2015.04.005

Journal Article Type Article
Acceptance Date Apr 25, 2015
Online Publication Date Apr 29, 2015
Publication Date Sep 30, 2015
Deposit Date Aug 5, 2015
Publicly Available Date Aug 5, 2015
Journal Journal of International Economics
Print ISSN 0022-1996
Electronic ISSN 0022-1996
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 97
Issue 1
DOI https://doi.org/10.1016/j.jinteco.2015.04.005
Keywords public debt, debt threshold, economic growth
Public URL http://eprints.nottingham.ac.uk/id/eprint/29158
Publisher URL http://www.sciencedirect.com/science/article/pii/S0022199615000690#
Related Public URLs http://www.sciencedirect.com/science/MiamiMultiMediaURL/1-s2.0-S0022199615000690/1-s2.0-S0022199615000690-mmc1.pdf/271695/html/S0022199615000690/3a1ffa20b5ea2cc05809246c068b8052/mmc1.pdf
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0





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