Series: IMF Working Papers
Author(s): Alexander Chudik , Kamiar Mohaddes , M. Pesaran , and Mehdi Raissi
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 08 September 2015
Keywords: Panel tests of threshold effects, long-run relationships, estimation and inference, large dynamic heterogeneous panels, cross-section dependence, and inflation, variables, gdp, cd, inflation
This paper studies the long-run impact of public debt expansion on economic growth and investigates whether the debt-growth relation varies with the level of indebtedness. Our contribution is both theoretical and e...