Imbs, Jean; Rancière, Romain - Department of Economics and Business, Universitat … - 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 …