Does Ricardian equivalence hold in Australia? A revision based on testing super exogeneity with impulse-indicator saturation

Kónya, László; Abdullaev, Bekzod

doi:10.1007/s00181-014-0876-9

Cited by 1 publication

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“…Evans [21] derives conditions under which Ricardian equivalence holds even in the case of non-rational expectation behavior. In addition, many recent studies test whether the hypothesis holds in any specific country [22][23][24][25]. Choi and Holmes [26] present a different view by stating that a long-horizon data set shows a mixture of two regimes, Ricardian equivalence and non-Ricardian equivalence regimes.…”

Section: Public Debt and Economic Growthmentioning

confidence: 99%

Public Debt, Corruption and Sustainable Economic Growth

Kim

2017

Sustainability

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Abstract:There are many studies that look into the relationship between public debt and economic growth. It is hard to find, however, research addressing the role of corruption between these two variables. Noticing this vacancy in current literature, we strive to investigate the effect of corruption on the relationship between public debt and economic growth. For this purpose, the pooled ordinary least squares (OLS), fixed effects models and the dynamic panel generalized method of moments (GMM) models (Arellano-Bond, 1991) are estimated with data of 77 countries from 1990 to 2014. The empirical results show that the interaction term between public debt and corruption is statistically significant. This confirms the hypothesis that the effect of public debt on economic growth is a function of corruption. The sign of the marginal effect is negative in corrupt countries, but public debt enhances economic growth within countries that are not corrupt, i.e., highly transparent.

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Section: Public Debt and Economic Growthmentioning

confidence: 99%

Public Debt, Corruption and Sustainable Economic Growth

Kim

2017

Sustainability

View full text Add to dashboard Cite

show abstract

Does Ricardian equivalence hold in Australia? A revision based on testing super exogeneity with impulse-indicator saturation

Cited by 1 publication

References 27 publications

Public Debt, Corruption and Sustainable Economic Growth

Public Debt, Corruption and Sustainable Economic Growth

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