Please use this identifier to cite or link to this item:
https://hdl.handle.net/2445/106985
Title: | On the bi-directional causal relationship between public debt and economic growth in EMU countries |
Author: | Gómez-Puig, Marta Sosvilla Rivero, Simón |
Keywords: | Deute públic Creixement econòmic Causalitat Països de la Unió Europea Public debt Economic growth Causation European Union countries |
Issue Date: | Dec-2015 |
Publisher: | Elsevier |
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: | Versió postprint del document publicat a: https://doi.org/10.1016/j.jpolmod.2015.09.004 |
It is part of: | Journal of Policy Modeling, 2015, vol. 37, num. 6, p. 974-989 |
URI: | https://hdl.handle.net/2445/106985 |
Related resource: | https://doi.org/10.1016/j.jpolmod.2015.09.004 |
ISSN: | 0161-8938 |
Appears in Collections: | Articles publicats en revistes (Economia) |
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