Asymmetric Impact of Public Debt on Economic Growth in Selected EU Countries

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F15%3A86095975" target="_blank" >RIV/61989100:27510/15:86095975 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Asymmetric Impact of Public Debt on Economic Growth in Selected EU Countries

Original language description

The paper explores the asymmetric relation between public debt and economic growth in 13 EU countries in the period 1993 - 2013. A panel data model uncovers a linear relation between debt-to-GDP decrease and GDP growth, while the relation between the debt-to-GDP increase and GDP growth is defined by an inverted U-shaped curve (parabola) with the peak at a 64% debt-to-GDP ratio. We identified two main patterns in relations between debt-to-GDP and GDP growth: (i) hysteresis loop - country data trace the closed circle defined within the debt interval [53%, 113%] (Austria, Finland, Denmark) and (ii) debt trap - country debt-to-GDP ratio breaks the 113% level and indebtedness increase followed by the GDP fall is tracing the diverging tail of parabola (debttrap in Greece, Italy, Portugal).

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2015

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Ekonomický časopis

ISSN

0013-3035

e-ISSN

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Volume of the periodical

63

Issue of the periodical within the volume

9

Country of publishing house

SK - SLOVAKIA

Number of pages

15

Pages from-to

944-958

UT code for WoS article

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EID of the result in the Scopus database

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