Please use this identifier to cite or link to this item: http://hdl.handle.net/2445/66900
Title: On the bi-directional causal relationship between public debt and economic growth in EMU countries [WP]
Author: Gómez-Puig, Marta
Sosvilla Rivero, Simón, 1961-
Keywords: Deute públic
Creixement econòmic
Causalitat
Països de la Unió Europea
Public debt
Economic growth
Causation
European Union countries
Issue Date: 2015
Publisher: Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
Abstract: New evidence is presented on the possible existence of bi-directional causal relationships between public debt and economic growth in both central and peripheral countries of the European Economic and Monetary Union. We test for heterogeneity in the bi-directional Granger-causality across both time and space during the period between 1980 and 2013. The results suggest evidence of a “diabolic loop” between low economic growth and high public debt levels in Spain after 2009. For Belgium, Greece, Italy and the Netherlands debt has a negative effect over growth from an endogenously determined breakpoint and above a debt threshold ranging from 56% to 103% depending on the country.
Note: Reproducció del document publicat a: http://www.ub.edu/irea/working_papers/2015/201512.pdf
It is part of: IREA – Working Papers, 2015, IR15/012
URI: http://hdl.handle.net/2445/66900
ISSN: 2014-1254
Appears in Collections:Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

Files in This Item:
File Description SizeFormat 
IR15-012_GomezPuig-Sosvilla.pdf771.48 kBAdobe PDFView/Open


This item is licensed under a Creative Commons License Creative Commons