The influence of public debt on the performance of the economy

Mareček, Jan; Machová, Veronika

doi:10.1051/shsconf/20173901018

Cited by 2 publications

(2 citation statements)

References 13 publications

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“…According to Mareček and Machová (2017), the GDP of each country is very important, because its value directly correlates with the amount of public debt within all EU states and thus also the V4. For this reason, government officials should take steps to strengthen economic development in various dimensions of economic life (Gavurova et al, 2021a;Gavurova et al, 2021b).…”

Section: Resultsmentioning

confidence: 99%

Laffer curve - a comparative study across the V4 (Visegrad) countries

Wang¹,

Rousek²,

Hašková³

2021

JESI

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The essence of the Laffer curve is simple -it represents the relationship between the tax rate imposed by a government and the tax revenues. Tax revenues are the product of the tax rate and the tax base. For this article and based on the theory that underpins the Laffer curve, the application thereof is generalized, and the economic growth rate adopted instead of tax revenues. The purpose of this article is, on the basis of the theory that underpins the Laffer curve, to determine the optimal tax rate in the V4 countries and to compare the results across these countries. Data on the GDP growth rates and tax rates in the Visegrad countries (V4 countries) for the period 1995-2017 are collated and the regression method applied to them to determine the suitable parameter values. For this study, the V4 countries are looked at as a whole. According to the conclusion drawn, it can be stated that the relationship between the GDP growth rate and the tax rate is significant for the V4 countries, and that the parameters of the regression equations conform to the expected symbols. This implies that the Laffer curve conforms with the overall situation in the V4 countries. Further analysis of the optimal tax rate and the situation in each country showed that Poland and the Slovak Republic have the more appropriate tax rates, whereas the Czech Republic and Hungary need to appropriately adjust their tax rates.

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Section: Resultsmentioning

confidence: 99%

Laffer curve - a comparative study across the V4 (Visegrad) countries

Wang¹,

Rousek²,

Hašková³

2021

JESI

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“…High debt levels exacerbate inflation bias (Leeper et al 2021), and countries should be wary of allowing public debt ratios to rise above 50-60 percent of GDP as fiscal solvency wanes (Debrun et al 2019). Large public debt raises interest rates, extrudes private investments, worsens fixed balance and widens short-term fluctuation (Mareček,& Machová 2017). Public debt becomes unsustaible when debt service payments exceed GDP growth, resulting in bankruptcy or default (Dunayev, 2013).…”

Section: Brief Overview Of the Latest Debates Around Public Debtmentioning

confidence: 99%

Content analysis of public debt in prescribed undergraduate South African economics textbooks

Nyika,

Muzuva,

Mugova

et al. 2023

JAE

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In the last fifteen years, rising public debt has been one of the most critical economic concerns confronting the world economy. The IMF and the World Bank have warned of increasing risks of multiple public debt defaults. It is vital that university students studying introductory economics understand the severity of the risks that these record debt levels pose, as many economics students do not study the subject beyond the first year.The purpose of this study was to examine how prescribed first-year economics textbooks treat public debt content. The research used a methodology of summative content analysis of three economics textbooks using a categorisation scheme to collect data.We find that the books do not address the most recent literature on public debt, notably arguments on the link between debt and economic growth or inflation. Moreover, the research indicated that the three texts convey public debt in very different ways; for example, one textbook completely dismisses any public debt concerns in a very short section dedicated to the topic. Another text uses detailed illustrations and provides context that assists students in understanding events that contribute to rising public debt levels.This study recommends that we include more historical examples, use more graphs to illustrate the data, and offer differing views to the mainstreams on public debt, including those raised by scholars and by multilateral institutions.

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The influence of public debt on the performance of the economy

Cited by 2 publications

References 13 publications

Laffer curve - a comparative study across the V4 (Visegrad) countries

Laffer curve - a comparative study across the V4 (Visegrad) countries

Content analysis of public debt in prescribed undergraduate South African economics textbooks

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