Public debt and economic growth: An empirical evaluation

María del Carmen Ramos-Herrera () and Simon Sosvilla-Rivero
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María del Carmen Ramos-Herrera: Department of Quantitative Economics, Universidad Complutense de Madrid
Authors registered in the RePEc Author Service: Maria del Carmen Ramos Herrera ()

No 16-06, Working Papers from Asociación Española de Economía y Finanzas Internacionales

Abstract: Based on a data set of 115 economies, this paper empirically investigates the relation between public debt and economic growth. We find that those countries that present low public debt are characterized by higher economic growth, while the smallest growth rates are associated with high public debt. Nevertheless, this conclusion is tempered when we analyse the countries by income level: low-income countries have a different behaviour with respect to lower-middle, upper-middle and high income countries.

Keywords: Public debt; economic growth (search for similar items in EconPapers)
JEL-codes: C32 H63 O40 O57 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2016-06
New Economics Papers: this item is included in nep-fdg, nep-gro, nep-pr~ and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:aee:wpaper:1606

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