Köhler-Töglhofer and Zagler investigate the impact of compositional effects on public debt dynamics under different fiscal policy regimes. The analysis moves from the literature on the role of compositional effects for the success of fiscal consolidation episodes to a broader set of policy...

This paper investigates compositional effects on public-debt dynamics. Our contribution is twofold. First, we improve the methodology by taking explicit account of public-debt dynamics, eliminating a bias present in previous studies. Second, we estimate the evolution of debt dynamics induced by...