Furceri, Davide; Zdzienicka, Aleksandra - Groupe d'Analyse et de Théorie Économique Lyon … - 2010
The aim of this paper is to assess the consequences of banking crises on public debt. Using an unbalanced panel of 154 countries from 1980 to 2006, the paper shows that banking crises produce a significant and long-lasting increase in government debt. The effect is a function of the severity of...