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The role of government debt in economic growth

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Resumo:We study the effect of public debt on economic growth for annual and 5-year average growth rates, as well as the existence of non-linearity effects of debt on growth for 14 European countries from 1970 until 2012. We also consider debt-to-GDP ratio interactions with monetary, public finance, institutional and macroeconomic variables. Our results show a negative impact of -0.01% for each 1% increment of public debt, although debt service has a 10 times worse effect on growth. In addition, we find average debt ratio thresholds of around 75%. Belonging to the Eurozone has a detrimental effect of at least -0.5% for real per capita GDP, and the banking crisis is the most harmful crisis for growth.
Autores principais:Afonso, António
Outros Autores:Alves, José
Assunto:Government Debt Economic Growth Debt Thresholds
Ano:2014
País:Portugal
Tipo de documento:working paper
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
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author Afonso, António
author2 Alves, José
author2_role author
author_facet Afonso, António
Alves, José
author_role author
contributor_name_str_mv Repositório Científico de Acesso Aberto da ULisboa
country_str PT
creators_json_txt [{\"Person.name\":\"Afonso, António\"},{\"Person.name\":\"Alves, José\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Repositório Científico de Acesso Aberto da ULisboa
datacite.creators.creator.creatorName.fl_str_mv Afonso, António
Alves, José
datacite.date.Accepted.fl_str_mv 2014-01-01T00:00:00Z
datacite.date.available.fl_str_mv 2014-11-04T15:30:14Z
datacite.date.embargoed.fl_str_mv 2014-11-04T15:30:14Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Government Debt
Economic Growth
Debt Thresholds
datacite.titles.title.fl_str_mv The role of government debt in economic growth
dc.contributor.none.fl_str_mv Repositório Científico de Acesso Aberto da ULisboa
dc.creator.none.fl_str_mv Afonso, António
Alves, José
dc.date.Accepted.fl_str_mv 2014-01-01T00:00:00Z
dc.date.available.fl_str_mv 2014-11-04T15:30:14Z
dc.date.embargoed.fl_str_mv 2014-11-04T15:30:14Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10400.5/7410
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv ISEG – Departamento de Economia
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Government Debt
Economic Growth
Debt Thresholds
dc.title.fl_str_mv The role of government debt in economic growth
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_8042
description We study the effect of public debt on economic growth for annual and 5-year average growth rates, as well as the existence of non-linearity effects of debt on growth for 14 European countries from 1970 until 2012. We also consider debt-to-GDP ratio interactions with monetary, public finance, institutional and macroeconomic variables. Our results show a negative impact of -0.01% for each 1% increment of public debt, although debt service has a 10 times worse effect on growth. In addition, we find average debt ratio thresholds of around 75%. Belonging to the Eurozone has a detrimental effect of at least -0.5% for real per capita GDP, and the banking crisis is the most harmful crisis for growth.
dirty 0
eu_rights_str_mv openAccess
format workingPaper
fulltext.url.fl_str_mv https://repositorio.ulisboa.pt/bitstreams/f370ce7a-4eb9-4adb-8834-fc3bcaeef649/download
id ul_4c43e5200fde4b964b59f01acd366ad6
identifier.url.fl_str_mv http://hdl.handle.net/10400.5/7410
instacron_str ul
institution Universidade de Lisboa
instname_str Universidade de Lisboa
language eng
network_acronym_str ul
network_name_str Repositório da Universidade de Lisboa
oai_identifier_str oai:repositorio.ulisboa.pt:10400.5/7410
organization_str_mv urn:organizationAcronym:ul
person_str_mv Afonso, António
Alves, José
publishDate 2014
publisher.none.fl_str_mv ISEG – Departamento de Economia
reponame_str Repositório da Universidade de Lisboa
repository_id_str urn:repositoryAcronym:ul
service_str_mv urn:repositoryAcronym:ul
spelling engISEG – Departamento de EconomiaporWe study the effect of public debt on economic growth for annual and 5-year average growth rates, as well as the existence of non-linearity effects of debt on growth for 14 European countries from 1970 until 2012. We also consider debt-to-GDP ratio interactions with monetary, public finance, institutional and macroeconomic variables. Our results show a negative impact of -0.01% for each 1% increment of public debt, although debt service has a 10 times worse effect on growth. In addition, we find average debt ratio thresholds of around 75%. Belonging to the Eurozone has a detrimental effect of at least -0.5% for real per capita GDP, and the banking crisis is the most harmful crisis for growth.application/pdfporThe role of government debt in economic growthAfonso, AntónioAlves, JoséHostingInstitutionOrganizationalRepositório Científico de Acesso Aberto da ULisboae-mailmailto:repositorio@reitoria.ulisboa.ptrepositorio@reitoria.ulisboa.ptISSNIsPartOf2183-18152014-11-04T15:30:14Z20142014-01-01T00:00:00ZHandlehttp://hdl.handle.net/10400.5/7410http://purl.org/coar/access_right/c_abf2open accessGovernment DebtEconomic GrowthDebt Thresholds836287 bytesother research producthttp://purl.org/coar/resource_type/c_8042working paperhttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ulisboa.pt/bitstreams/f370ce7a-4eb9-4adb-8834-fc3bcaeef649/download
spellingShingle The role of government debt in economic growth
Afonso, António
Government Debt
Economic Growth
Debt Thresholds
status SINGLETON
subject.fl_str_mv Government Debt
Economic Growth
Debt Thresholds
title The role of government debt in economic growth
title_full The role of government debt in economic growth
title_fullStr The role of government debt in economic growth
title_full_unstemmed The role of government debt in economic growth
title_short The role of government debt in economic growth
title_sort The role of government debt in economic growth
topic Government Debt
Economic Growth
Debt Thresholds
topic_facet Government Debt
Economic Growth
Debt Thresholds
url http://hdl.handle.net/10400.5/7410
visible 1