Nonlinear effects of government debt on private consumption: Evidence from OECD countries

This paper investigates nonlinear effects of government debt on private consumption. The estimated consumption function shows smooth regime switching depending on the debt-to-GDP ratio, and a higher level of government debt crowds out private consumption to a greater extent.

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Year of publication:	2013
Authors:	Cho, Dooyeon ; Rhee, Dong-Eun
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 121.2013, 3, p. 504-507
Publisher:	Elsevier
Subject:	Consumption \| Government debt \| Nonlinearity \| Panel smooth transition regression error correction model

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Type of publication:	Article
Classification:	C23 - Models with Panel Data ; E21 - Consumption; Saving ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H63 - Debt; Debt Management
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010729469