Munich Personal RePEc Archive

Does sovereign debt weaken economic growth? A Panel VAR analysis.

Lof, Matthijs and Malinen, Tuomas (2013): Does sovereign debt weaken economic growth? A Panel VAR analysis.

[img]
Preview
PDF
Debt_LM.pdf

Download (256kB) | Preview

Abstract

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.