Gómez-Puig, MartaSosvilla Rivero, Simón2015-09-162015-09-1620152014-1254https://hdl.handle.net/2445/66900New 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.32 p.application/pdfengcc-by-nc-nd, (c) Gómez-Puig et al., 2015http://creativecommons.org/licenses/by-nc-nd/3.0/Deute públicCreixement econòmicCausalitatPaïsos de la Unió EuropeaPublic debtEconomic growthCausationEuropean Union countriesinfo:eu-repo/semantics/workingPaper2015-09-16info:eu-repo/semantics/openAccess