We study the dynamics of U.S. public debt in a parsimonious VAR. We find that including debt feedback ensures the … stationarity of debt while standard VARs excluding debt may imply an explosive debt path. We also find that the response of debt to … inflation increases debt while the same to interest rate decreases it. Positive shocks to growth and primary surplus …

The real output deterioration, high fiscal deficits and increased sovereign debt burden represents key phenomena that …

The real output deterioration, high fiscal deficits and increased sovereign debt burden represents key phenomena that …

European Union member countries are currently exposed to negative implications of the economic and debt crisis … after the debt crisis contagion flooded Europe. In the paper we provide an overview of main trends in public budgets and … in cyclically adjusted primary balance on the sovereign debt ratio reduction. We also estimate VAR model to analyze …

European Union member countries are currently exposed to negative implications of the economic and debt crisis … after the debt crisis contagion flooded Europe. In the paper we provide an overview of main trends in public budgets and … improvements in cyclically adjusted primary balance on the sovereign debt ratio reduction. We also estimate VAR model to analyze …

This study investigates the effect of public debt on growth, interest rate, and sustaibility of public debt in a very … long-run growth. It makes public debt less sustainable when public debt is very large. This study also examine the effect … of investment subsidy financed by public debt. It hinder economic growth in the long-run although they affect posively on …

revenue to GDP and the ratio of debt to GDP, and (ii) an increase in the ratio of capital income tax revenue to GDP in …