Public debt, economic growth and nonlinear effects: Myth or reality?
dc.contributor.author | Egert, balazs | |
dc.date.accessioned | 2016-08-30T19:50:13Z | |
dc.date.available | 2016-08-30T19:50:13Z | |
dc.date.issued | 2013-02-01 | |
dc.identifier.other | RePEc:wdi:papers:2013-1042 | |
dc.identifier.uri | https://hdl.handle.net/2027.42/133060 | |
dc.description.abstract | This paper puts the Reinhart-Rogoff dataset to a formal econometric testing to see whether public debt has a negative nonlinear effect on growth if public debt exceeds 90% of GDP. Using nonlinear threshold models, we show that the negative nonlinear relationship between debt and growth is very sensitive to modelling choices. We also show that when nonlinearity is detected, the negative nonlinear effect kicks in at much lower levels of public debt (between 20% and 60% of GDP). These results, based on bivariate regressions on secular time series, are confirmed on a shorter dataset (1960-2010) using a multivariate growth framework. | |
dc.relation.ispartofseries | wp1042 | |
dc.subject | public debt | |
dc.subject | economic growth | |
dc.subject | nonlinearity | |
dc.subject | threshold effects | |
dc.subject.other | E6 | |
dc.subject.other | F3 | |
dc.subject.other | F4 | |
dc.subject.other | N4 | |
dc.title | Public debt, economic growth and nonlinear effects: Myth or reality? | |
dc.type | Working Paper | |
dc.subject.hlbsecondlevel | Economics | |
dc.subject.hlbtoplevel | Business | |
dc.contributor.affiliationum | William Davidson Institute | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/133060/1/wp1042.pdf | |
dc.contributor.authoremail | balazs.egert@oecd.org | |
dc.owningcollname | William Davidson Institute (WDI) - Working Papers |
Files in this item
Remediation of Harmful Language
The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.
Accessibility
If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.