Imbs, Jean; Rancière, Romain - C.E.P.R. Discussion Papers - 2005
We revisit the debt overhang question. We first use non-parametric techniques to isolate a panel of countries on the … downward sloping section of a debt Laffer curve. In particular, overhang countries are ones where a threshold level of debt is … reached in sample, beyond which (initial) debt ends up lowering (subsequent) growth. On average, significantly negative …