Šuliková, Veronika and Đukić, Mihajlo and Gazda, Vladimir and Horváth, Denis and Kulhánek, Lumir (2015) Asymmetric impact of public debt on economic growth in selected EU countries. Ekonomický časopis : časopis pre ekonomickú teóriu a hospodársku politiku, 63 (9). pp. 944-958. ISSN 0013-3035
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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-toGDP 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 (debt trap in Greece, Italy, Portugal)
| Item Type: | Article |
|---|---|
| Additional Information: | COBISS.ID=512362594 |
| Uncontrolled Keywords: | public debt, economic growth, debt trap, dynamic panel data model, non-linear relation, asymmetric relation |
| Research Department: | Macroeconomics |
| Depositing User: | Jelena Banovic |
| Date Deposited: | 14 Dec 2016 14:21 |
| Last Modified: | 14 Apr 2020 16:30 |
| URI: | http://ebooks.ien.bg.ac.rs/id/eprint/908 |
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