Template-type: ReDIF-Paper 1.0  
Author-Name: Marta Gómez-Puig
Author-Email: marta.gomezpuig@ub.edu
Author-Workplace-Name: Instituto Complutense de Estudios Internacionales (ICEI). Universidad Complutense de Madrid.
Author-Name: Simón Javier Sosvilla-Rivero
Author-Email: simonjavier.sosvilla.rivero@ccee.ucm.es
Author-Workplace-Name: Instituto Complutense de Estudios Internacionales (ICEI). Universidad Complutense de Madrid.
Title: Debt-growth linkages in EMU across countries and time horizons
Abstract: This paper contributes to the literature by empirically examining whether the influence of public debt on economic growth 
	differs between the short and the long run and presents different patterns across euro-area countries. To this end, we use 
	annual data from both central and peripheral countries of the European Economic and Monetary Union (EMU) for the 1960-2012 
	period and estimate a growth model augmented for public debt using the Autoregressive Distributed Lag (ARDL) bounds testing 
	approach. Our findings tend to support the view that public debt always has a negative impact on the long-run performance 
	of EMU countries, whilst its short-run effect may be positive depending on the country.
Keywords: Public debt; Economic growth; Bounds testing; Euro area; Peripheral EMU countries; Central EMU countries.
Creation-Date: 2016 
Length: 40 pages
Number:
 1602
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/wpaper02-16.txt
File-URL: https://eprints.ucm.es/id/eprint/39112/1/1602.pdf
File-Format: Application/pdf
File-Function: Full text
Handle: RePEc:ucm:wpaper:1602