Public debt and growth: Heterogeneity and non-linearity
By M. Eberhardt, A. Presbitero. 2015
572 citations recorded by the source corpus.
We study the long-run relationship between public debt and growth in a large panel of countries. Our analysis builds on theoretical arguments and data considerations in modelling the debt–growth relationship as heterogeneous across countries. We investigate the debt–growth nexus adopting linear and non-linear specifications, employing novel methods and diagnostics from the time-series literature adapted for use in the panel. We find some support for a negative relationship between public debt and long-run growth across countries, but no evidence for a similar, let alone common, debt threshold within countries.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/8deaa55cf9c1ff67ee5a1f5d8f3c7877c483cfc9
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In Economics and Econometrics
Citations in the corpus
- Global Waves of Debt: Causes and Consequences (2021, background): “1 For example, BIS (2015); Eberhardt and Presbitero (2015); Cecchetti, Mohanty, and Zampolli (2011); Eichengreen et al.”
- The Incidental Parameters Problem in Testing for Remaining Cross-Section Correlation (2018, unknown): “…as a misspecification test for regression models that already account for cross-section dependence has repeatedly been observed in empirical studies (see, e.g., Holly, Pesaran, and Yamagata 2010; Everaert and Pozzi 2014, Bailey, Holly, and Pesaran 2016; Eberhardt and Presbitero 2015 among others).”