In this paper we test whether German public debt has been sustainable by resorting to a test proposed by Bohn (1998). We apply non-parametric and semi-parametric regressions with time depending coefficients. This test shows that the mean of the coefficient relevant for sustainability has been...

This paper empirically studies public debt sustainability with the panalized panel splines approach for 25 EU economies from 2000 to 2019 by estimating the response of the primary surplus to lagged debt relative to GDP, respectively. A positive coefficient on average indicates sustainable...

Introduction -- Sustainable Public Debt: Theory and Empirical Evidence -- Debt and Growth: A Basic Endogenous Growth Model -- Productive Government Spending, Public Debt and Growth -- Government Debt and Human Capital Formation -- Debt and Growth: Empirical Evidence -- Conclusion.

This paper starts from the observation that the primary surplus of the government must be financed out of a country's GDP. Assuming that the interest rate on public debt exceeds the growth rate of GDP, it is demonstrated that a sustainable debt policy is not compatible with a rising public debt...

This paper empirically studies public debt sustainability with the penalized panel splines approach for 25 EU economies from 2000 to 2019 by estimating the response of the primary surplus to lagged debt relative to GDP, respectively. A positive coefficient on average indicates sustainable...