government debt and economic growth pdf

Government debt and economic growth / César Calderón, J Rodrigo Fuentes p cm and fiscal policies that led to a sharp increase in the sovereign debt of 

Consequently, uncertainty rises and additionally fiscal flexibility for productive government spending is reduced with negative effects on growth (Teles and 

This paper investigates the average relationship between the government debt-to -GDP ratio and the per-capita GDP growth rate in a sample of 12 euro area 

The institutional variable selected shows the expected sign suggesting that countries with democratic governments exhibit higher growth rates Keywords: Debt, 

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 

The relevance of government debt for economic growth has become crucial, particularly in a context where policy makers have to face increasing fiscal imbalances 

This paper investigates the average impact of government debt on GDP growth in the Euro area countries using data from the period 1981-2014 The empirical 

In this situation, national savings will decrease and total investment will fall; this will have a negative effect on GDP as it will reduce capital stock, increase interest  

According to Elmendorf and Mankiw's (1999) back-of-the-envelope cal- culations, each additional dollar of government debt reduces steady-state gross output by