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Public Debt and Economic Growth

  • Alfred Greiner
  • Bettina Fincke

Part of the Dynamic Modeling and Econometrics in Economics and Finance book series (DMEF, volume 11)

Table of contents

  1. Front Matter
    Pages I-VIII
  2. Alfred Greiner, Bettina Fincke
    Pages 1-3
  3. Alfred Greiner, Bettina Fincke
    Pages 5-69
  4. Alfred Greiner, Bettina Fincke
    Pages 71-82
  5. Alfred Greiner, Bettina Fincke
    Pages 111-127
  6. Alfred Greiner, Bettina Fincke
    Pages 129-132
  7. Back Matter
    Pages 133-144

About this book

Introduction

Starting point of this book is the observation that an increase in public debt must be accompanied by a rise in the primary surplus of the government to guarantee sustainability of public debt. The book first elaborates on that principle from a theoretical point of view and then tests whether empirical evidence for that rule can be found. Additional tests are implemented to gain further evidence on sustainability of public debt. In order to allow for time varying coefficients penalized spline estimations are performed. The theoretical chapters present endogenous growth models and assume that the primary surplus rises as public debt increases so that sustainability of public debt is given. Implications of public deficits and debt are studied assuming full employment and for unemployment. The conclusion summarizes the findings and compares the results of the different models. Finally, policy implications are given showing how governments should deal with high public debt to GDP ratios.

Keywords

Deficit Policy Developing Countries Endogenous Growth Government Debt Public Debt economic growth growth growth model

Authors and affiliations

  • Alfred Greiner
    • 1
  • Bettina Fincke
    • 2
  1. 1.FB WirtschaftswissenschaftenUniversität BielefeldBielefeldGermany
  2. 2.FB WirtschaftswissenschaftenUniversität BielefeldBielefeldGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-01745-2
  • Copyright Information Springer-Verlag Berlin Heidelberg 2009
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-642-01744-5
  • Online ISBN 978-3-642-01745-2
  • Series Print ISSN 1566-0419
  • Buy this book on publisher's site