Ogawa, Kazuo; Sterken, Elmer; Tokutsu, Ichiro - 2016
We investigate the causal relationship between the public debt to GDP ratio and economic growth for 31 EU and OECD … explicit in their analysis. We estimate a panel VAR model that incorporates the long-term real interest rate on government … bonds as a vehicle to transmit shocks in both the public debt to GDP ratio and economic growth. We find no causal link from …