RT Journal Article
T1 The causal relationship between debt and growth in EMU countries
A1 Gómez-Puig, Marta
A1 Sosvilla-Rivero, Simón
AB New evidence is presented on the possible existence of bi-directional causal relationships between public debt and economic growth in both central and peripheral countries of the European Economic and Monetary Union. We test for heterogeneity in the bi-directional Granger-causality across both time and space during the period between 1980 and 2013. The results suggest evidence of a “diabolic loop” between low economic growth and high public debt levels in Spain after 2009. For Belgium, Greece, Italy and the Netherlands debt has a negative effect over growth from an endogenously determined breakpoint and above a debt threshold ranging from 56% to 103% depending on the country.
PB Elsevier
SN 0161-8938
YR 2015
FD 2015
LK https://hdl.handle.net/20.500.14352/34187
UL https://hdl.handle.net/20.500.14352/34187
LA eng
NO Ministerio de Economía y Competitividad (MINECO)/FEDER
NO Instituto de Estudios Fiscales (IEF)
DS Docta Complutense
RD 3 may 2024