Template-type: ReDIF-Paper 1.0  
Author-Name: Marta Gómez-Puig
Author-Email: marta.gomezpuig@ub.edu
Author-Workplace-Name: Universitat de Barcelona, Department of Economics and Riskcenter. 08034 Barcelona, Spain.
Author-Name: Simón Sosvilla-Rivero
Author-Email: sosvilla@ccee.ucm.es
Author-Workplace-Name: Instituto Complutense de Estudios Internacionales (ICEI). Universidad Complutense de Madrid.
Title: Public debt and economic growth: Further evidence for the euro area
Abstract: This paper empirically investigates the short and long run impact of public debt on economic growth. We use annual data from both central and 
	peripheral countries of the euro area (EA) for the 1961-2013 period and estimate a production function augmented with a debt stock term by applying the 
	Autoregressive Distributed Lag (ARDL) bounds testing approach. Our results suggest different patterns across EA countries and tend to support the view 
	that public debt always has a negative impact on the long-run performance of EA member states, whilst its short-run effect may be positive depending on 
	the country.
Classification-JEL: C22, F33, H63, O40, O52.
Keywords:
 Public debt; Economic growth; Bounds testing; Euro area; Peripheral euro area countries; Central euro area countries.
Creation-Date: 2017
Length: 33 pages
Number: 1709
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/wpaper17-09.txt
File-URL: https://eprints.ucm.es/id/eprint/45012/1/WP09-17.pdf
File-Format: Application/pdf
File-Function: Full text
Handle: RePEc:ucm:wpaper:1709