Balassone, Fabrizio; Francese, Maura; Pace, Angelo - Banca d'Italia - 2011
In this paper we investigate the link between government debt-to-GDP ratio and real per capita income growth in Italy … negative relation between public debt and growth and of a stronger effect of foreign debt compared to domestic debt before … World War I. The effect of public debt on growth appears to work mainly through reduced investment. These results help …