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Public Debt and Growth: New Insights

Journal of the Knowledge Economy · Haziran 2024

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YÖKSİS Kayıtları
Public Debt and Growth: New Insights
Journal of the Knowledge Economy · 2023 SSCI
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Makale Bilgileri

DergiJournal of the Knowledge Economy
Yayın TarihiHaziran 2024
Cilt / Sayfa15 · 8706-8736
Özet This paper approaches the causality of public debt and economic growth from three perspectives: Historical for the data, theoretical for the relations, and econometrical for the examination. We examine causality for the United States (US), United Kingdom (UK), Sweden (SE), and Japan (JP) over the period starting from 1801 up to 2011, with the nonlinearity of Fourier and Asymmetric approaches. Asymmetric causality results point out that negative shocks in growth increase debt for SE, while negative shocks in debt decrease growth for the US. Fourier causality results show that there is a unidirectional causality for US and SE from growth to debt, while for the UK there is a bi-directional causality, namely reverse causality or hysteria theory. Asymmetric causality results do not confirm that debt decreases growth in any country, while Fourier causality results show reverse causality. This result has important policy implications specifically because economic growth influences the evolution of public debt with structural breaks.

Yazarlar (2)

1
Ibrahim Özmen
ORCID: 0000-0003-2632-4217
2
Mihai Mutascu
ORCID: 0000-0003-3837-3243

Anahtar Kelimeler

Asymmetric causality C4 E6 Fourier causality H68 O4 Public debt Reverse causality

Kurumlar

Selçuk Üniversitesi
Selçuklu Turkey
Universitatea de Vest din Timișoara
Timisoara Romania
Université d'Orléans
Orleans France
Zeppelin University
Friedrichshafen Germany

Metrikler

4
Atıf
2
Yazar
8
Anahtar Kelime

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