The role of government debt in economic growth

Detalhes bibliográficos
Autor(a) principal: Afonso, António
Data de Publicação: 2014
Outros Autores: Alves, José
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/7410
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.
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spelling The role of government debt in economic growthGovernment DebtEconomic GrowthDebt ThresholdsWe 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.ISEG – Departamento de EconomiaRepositório da Universidade de LisboaAfonso, AntónioAlves, José2014-11-04T15:30:14Z20142014-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/7410engAfonso, António, José Alves .2014. "The role of government debt in economic growth ". Instituto Superior de Economia e Gestão. DE Working papers nº 16-2014/DE/UECE2183-1815info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:38:08Zoai:www.repository.utl.pt:10400.5/7410Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T16:54:35.728796Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The role of government debt in economic growth
title The role of government debt in economic growth
spellingShingle The role of government debt in economic growth
Afonso, António
Government Debt
Economic Growth
Debt Thresholds
title_short 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_sort The role of government debt in economic growth
author Afonso, António
author_facet Afonso, António
Alves, José
author_role author
author2 Alves, José
author2_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Afonso, António
Alves, José
dc.subject.por.fl_str_mv Government Debt
Economic Growth
Debt Thresholds
topic Government Debt
Economic Growth
Debt Thresholds
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.
publishDate 2014
dc.date.none.fl_str_mv 2014-11-04T15:30:14Z
2014
2014-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/7410
url http://hdl.handle.net/10400.5/7410
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Afonso, António, José Alves .2014. "The role of government debt in economic growth ". Instituto Superior de Economia e Gestão. DE Working papers nº 16-2014/DE/UECE
2183-1815
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
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dc.publisher.none.fl_str_mv ISEG – Departamento de Economia
publisher.none.fl_str_mv ISEG – Departamento de Economia
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