Article ID Journal Published Year Pages File Type
5059410 Economics Letters 2014 5 Pages PDF
Abstract
We estimate panel vector autoregressions to analyze the highly disputed relationship between sovereign debt and economic growth. Using data on 20 developed countries, we find no evidence for a robust effect of debt on growth, even for higher levels of debt. We do find a significant negative reverse effect of growth on debt, which explains the negative correlation.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Does sovereign debt weaken economic growth? A panel VAR analysis
Authors
, ,