EconStor >
Europa-Universität Viadrina Frankfurt (Oder) >
Wirtschaftswissenschaftliche Fakultät, Europa-Universität Viadrina >
Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Europa-Universität Viadrina  >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/66226
  
Title:Does euro area membership affect the relation between GDP growth and public debt? PDF Logo
Authors:Dreger, Christian
Reimers, Hans-Eggert
Issue Date:2012
Series/Report no.:Discussion Paper, European University Viadrina, Department of Business Administration and Economics 327
Abstract:We analyse the relationship between the debt to GDP ratio and real per capita GDP growth for the euro area members by distinguishing between periods of sustainable and non-sustainable debt. Thresholds are theory-based and depend on the macroeconomic framework. If the interest rate exceeds nominal output growth, primary budget surpluses are required to achieve a sustainable debt ratio. The negative impact of the debt to GDP ratio is particularly strong for non sustainable ratios and especially relevant for the euro area. This suggests that the participation in monetary union might entail an additional risk for its members.
Subjects:Euro area debt crisis
debt sustainability
JEL:F43
O11
C23
Document Type:Working Paper
Appears in Collections:Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Europa-Universität Viadrina
Publikationen von Forscherinnen und Forschern des DIW

Files in This Item:
File Description SizeFormat
728595656.pdf157.61 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/66226

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.