Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200157
Authors: 
Gómez Puig, Marta
Sosvilla-Rivero, Simón
Martínez-Zarzoso, Inmaculada
Year of Publication: 
2019
Series/Report no.: 
cege Discussion Papers 374
Abstract: 
This paper uses panel data for 116 countries over the period 1995-2016 to investigate the heterogeneity of the debt-growth nexus across countries and the factors underlying it. In the first step, the grouped fixed effects (GFE) estimator proposed by Bonhomme and Manresa (2015) is used to classify countries into groups, with group membership being endogenously determined. In the second step, a multinomial logit model is used to explore the drivers of the heterogeneity detected, among them the quality of institutions, the composition of debt-funded public expenditure, the relative public and private indebtedness, and the maturity of debt. Finally, the underlying factors explaining the time-varying impact of public debt on growth in the country groups identified is also investigated.
Subjects: 
Public debt
economic growth
heterogeneity
grouped fixed-effects
debtgrowthlink
panel data
multinomial logit regression
JEL: 
C23
F33
H63
O47
O52
Document Type: 
Working Paper

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