What happens to the relationship between public debt and economic growth in European countries?

Authors

  • Rebeca Jimenez-Rodriguez University of Salamanca
  • Araceli Rodríguez-López

DOI:

https://doi.org/10.17811/ebl.4.4.2015.151-160

Abstract

The public debt level is nowadays an issue on which the general public has been particularly concerned. The importance of public debt level is mainly related with its impact on economic growth. There is a large body of policymaker who consider that high levels of public debt give rise to a reduction in economic growth in the long-run. This paper extends the existing empirical literature on the relationship between public debt and economic growth by analyzing the impact of public debt on economic growth in the core and periphery European countries, allowing cross-country heterogeneity and considering the trajectory of debt.

Author Biographies

Rebeca Jimenez-Rodriguez, University of Salamanca

Tenured Associate Professor (Profesor Titular de Universidad), Department of Economics, University of Salamanca

Araceli Rodríguez-López

Associate Professor (Contratado Doctor), Department of Economics, University of Valladolid

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Published

02-11-2015

How to Cite

Jimenez-Rodriguez, R., & Rodríguez-López, A. (2015). What happens to the relationship between public debt and economic growth in European countries?. Economics and Business Letters, 4(4), 151–160. https://doi.org/10.17811/ebl.4.4.2015.151-160