Test of a Quadratic Relationship Between Aggregate Output and Government Debt in Hungary

Yu Hsing

The European Journal of Applied Economics, 2018, vol. 15, issue 1, 38-45

Abstract: The study which applies extended model of aggregate demand and aggregate supply (AD/AS) and uses a quarterly sample during the period from 2001 (Q1) till the last quarter of 2015, has shown that real GDP in Hungary exhibits a bell-shaped quadratic relationship with government debt as a percent of GDP (DY), direct relationship with the real effective exchange rate (ER), stock market price (SP) and the real crude oil price (OP), and an inverse relationship with the real government bond yield (IR) and the expected inflation rate (EI). The critical value of government debt as a percent of GDP is estimated to be 69.22%, which is higher than the EU criterion of 60.00% but less than the threshold of 90.00% proposed by Reinhart and Rogoff (2010).

Keywords: government debt as a percent of GDP; real exchange rates; interest rates; stock prices; oil price. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.singidunum.ac.rs/files/2018-15-1/t ... -debt-in-hungary.pdf (application/pdf)
https://journal.singidunum.ac.rs/paper/test-of-a-q ... ment-debt-in-hungary (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sng:ejae01:94

DOI: 10.5937/EJAE15-15684

Access Statistics for this article

More articles in The European Journal of Applied Economics from Singidunum University, Belgrade
Bibliographic data for series maintained by EJAE Editorial Office ().