The role of government debt in economic growth Antonio Afonso, José Alvés
By: Afonso, António
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Contributor(s): Alves, José Costa.
Material type: 
ArticlePublisher: 2015Subject(s): DEUDA PUBLICA | DESARROLLO ECONOMICO | PRODUCTO INTERIOR BRUTO | UNION EUROPEA | BANCOS | CRISIS FINANCIERAOnline resources: Click here to access online
In:
Hacienda Pública Española n. 215 (4/2015), p. 9-26Summary: We study the effect of public debt on economic growth for anual and 5-year average growth rates, as well as the existence of non-linearity effectsof debt on growth for 14 European countries from 1970 until 2012. We also consider debt-to-GDP ratio interactions with various subsets of monetary, public finance, institutional and macroeconomic variables. Our results show a máximum negative impact of around -0.04% and -0.03% for each 1% increment of public debt, foranual and 5-year average growth rates, respectively. In addition, we find average debt ratio thresholds of around 75%. Belonging to the Eurozone has a detrimental effect at least -0.5% for real per capita GDP, and the banking crisis is themost harmful crisis for growth.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | HPE/2015/215-1 (Browse shelf) | Available | HPE/2015/215-1 |
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We study the effect of public debt on economic growth for anual and 5-year average growth rates, as well as the existence of non-linearity effectsof debt on growth for 14 European countries from 1970 until 2012. We also consider debt-to-GDP ratio interactions with various subsets of monetary, public finance, institutional and macroeconomic variables. Our results show a máximum negative impact of around -0.04% and -0.03% for each 1% increment of public debt, foranual and 5-year average growth rates, respectively. In addition, we find average debt ratio thresholds of around 75%. Belonging to the Eurozone has a detrimental effect at least -0.5% for real per capita GDP, and the banking crisis is themost harmful crisis for growth.
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