Public Debt and Economic Growth: An Empirical Evaluation

Asociación Española de Economía y Finanzas Internacionales, ISSN: 1696-6376

19 Pages Posted: 15 Feb 2016

See all articles by María del Carmen Ramos-Herrera

María del Carmen Ramos-Herrera

Universidad Complutense de Madrid (UCM)

Simon Sosvilla-Rivero

UCM Institute for Economic Analysis

Date Written: February 15, 2016

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

JEL Classification: C32, H63, O40, O57

Suggested Citation

Ramos-Herrera, María del Carmen and Sosvilla-Rivero, Simon, Public Debt and Economic Growth: An Empirical Evaluation (February 15, 2016). Asociación Española de Economía y Finanzas Internacionales, ISSN: 1696-6376. Available at SSRN: https://ssrn.com/abstract=2732595

María del Carmen Ramos-Herrera

Universidad Complutense de Madrid (UCM) ( email )

Carretera de Humera s/n
Madrid, Madrid 28223
Spain

Simon Sosvilla-Rivero (Contact Author)

UCM Institute for Economic Analysis ( email )

Carretera de Humera s/n
Madrid, Madrid 28223
Spain
+34913932626 (Phone)

HOME PAGE: http://www.ucm.es/info/ecocuan/ssr/

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