Checherita-Westphal, Cristina; Rother, Philipp - In: European Economic Review 56 (2012) 7, pp. 1392-1405
This paper investigates the average impact of government debt on per-capita GDP growth in twelve euro area countries over a period of about 40 years starting in 1970. It finds a non-linear impact of debt on growth with a turning point – beyond which the government debt-to-GDP ratio has a...