Does sovereign debt weaken economic growth? A Panel VAR analysis
We estimate a panel vector autoregressive model to analyze the highly disputed relationship between debt and growth. Using data on 20 developed countries, we find no evidence for a robust effect on debt to growth, even for higher levels of sovereign debt. We do find a significant negative reverse effect of growth to debt, which explains the negative correlation.
|Date of creation:||Oct 2013|
|Date of revision:|
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Web page: https://mpra.ub.uni-muenchen.de
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