Nonlinear Analysis of Growth’s Effect on Debt: Finding the Threshold
Sugeng Triwibowo,
Defy Oktaviani,
Nurfika
Abstract:Introduction/Main Objectives: This paper explores the nonlinear effect of economic growth on the accumulation of public debt for groups of countries, based on their income levels, by finding its threshold estimator. Background Problems: The existing literature has discussed the debt's effect on growth intensively. Thus, empirical analysis to observe the inverse relationship between both variables is needed. Novelty: This paper confirms the negative and nonlinear impact of economic growth on public debt, and fi… Show more
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