Life after Debt
| Authors | |
|---|---|
| Year of publication | 2017 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 7th EACO International Scientific Conference |
| MU Faculty or unit | |
| Citation | |
| Keywords | Debt; Economic growth; OECD countries; Panel data |
| Description | Development of gross debt in world´s economies during the past 20 years might seem to be alarming. From this reason it is interesting to investigate the impacts of debt development on the real economy. Therefore, the aim of this contribution is to examine the impacts of the debt and its parts on the economic growth of the advanced OECD countries in period from 1996 to 2016. The debt decomposition is made by the sectors, namely of general government, households and non-profit institutions serving to the households, non-financial corporations, financial corporations. An LSDV model of panel data is used. Results suggest that all debt quotas in levels are detrimental to the growth. Mostly the gross debt of households, non-financial corporations and public debt. If the first differences are used, only public debt is harmful. First difference of households’ debt and financial corporations’ debt might have positive effect. |
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