Un réexamen de la relation non linéaire entre déficits budgétaires et croissance économique
AbstractWe propose a simple theoretical model showing the existence of non-linear effects of fiscal deficits on economic growth, depending on the public debt to gdp ratio. For low debt values, raising deficit is growth increasing, as the debt burden raise may be absorbed by a decrease in government consumption. When public debt is high, government can no longer reduce public consumption, and productive spending must negatively adjust, therefore raising deficits becomes growth-reducing. We aim confirming the robustness of our results in an empirical analysis using data from 19 oecd countries. Estimations exhibit the existence of a non-linear effect of fiscal deficits on economic growth, depending on the public debt ratio. Classification JEL : H62, H63, E62
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Bibliographic InfoArticle provided by Presses de Sciences-Po in its journal Revue économique.
Volume (Year): 59 (2008)
Issue (Month): 3 ()
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Find related papers by JEL classification:
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
- H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
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- Eggoh C. Jude, 2010. "Financial Development And Growth: A Panel Smooth Regression Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(1), pages 15-33, March.
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