IDEAS home Printed from https://ideas.repec.org/a/cup/macdyn/v23y2019i04p1563-1585_00.html
   My bibliography  Save this article

Nonlinearities In The Relationship Between Debt And Growth: (No) Evidence From Over Two Centuries

Author

Listed:
  • Eberhardt, Markus

Abstract

I revisit the popular concern over a nonlinearity or threshold in the relationship between public debt and growth employing long time series data from up to 27 countries. My empirical approach recognizes that standard time series arguments for long-run equilibrium relations between integrated variables (cointegration) break down in nonlinear specifications such as those predominantly applied in the existing debt–growth literature. Adopting the novel cosummability approach, my analysis overcomes these difficulties to find no evidence for a systematic long-run relationship between debt and growth in the bivariate and economic theory-based multivariate specifications popular in this literature.

Suggested Citation

  • Eberhardt, Markus, 2019. "Nonlinearities In The Relationship Between Debt And Growth: (No) Evidence From Over Two Centuries," Macroeconomic Dynamics, Cambridge University Press, vol. 23(4), pages 1563-1585, June.
    • Handle: RePEc:cup:macdyn:v:23:y:2019:i:04:p:1563-1585_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1365100517000347/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Philipp Heimberger, 2021. "Do Higher Public Debt Levels Reduce Economic Growth?," wiiw Working Papers 211, The Vienna Institute for International Economic Studies, wiiw.
    2. Olesea Speian, 2024. "Debt Dynamics under Uncertainty: Evidence from the Republic of Moldova," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 50-63.
    3. Abrams M. E. Tagem, 2023. "The dynamic effects of aid and taxes on government spending," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(6), pages 1656-1687, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:macdyn:v:23:y:2019:i:04:p:1563-1585_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/mdy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.