Even Worse than You Thought: The Impact of Government Debt on Aggregate Investment and Productivity

2012 ◽  
Author(s):  
Carmine Trecroci ◽  
Simone Salotti
Keyword(s):  
Government Debt ◽  
Aggregate Investment ◽  
The Impact

The impact of government debt on private consumption in OECD countries

2007 ◽  
Vol 94 (2) ◽  
pp. 220-225 ◽  
Author(s):  
Robert-Paul Berben ◽  
Teunis Brosens
Keyword(s):  
Private Consumption ◽  
Government Debt ◽  
Oecd Countries ◽  
The Impact

scholarly journals The Impact of Austerity Measures on Government Borrowing in GIIPS

2016 ◽  
Vol 8 (12) ◽  
pp. 106 ◽  
Author(s):  
Imre Ersoy ◽  
Talha Yanmaz
Keyword(s):  
Empirical Analysis ◽  
Rate Increase ◽  
Panel Cointegration ◽  
Government Debt ◽  
Cointegration Test ◽  
Tax Rate ◽  
Economic Agents ◽  
Panel Cointegration Test ◽  
Using Data ◽  
The Impact

The article investigates the effects of austerity measures on government debt in Greece, Ireland, Italy, Portugal and Spain (GIIPS) by employing panel cointegration test and using data between 1998 and 2014. The result of empirical analysis shows that tax rate increase on personal income did not result with decrease in government debt. Interest rate and wage that are control variables are also positively related with government debt levels. The result of this empirical analysis suggests that the impact of austerity measures on government borrowing in GIIPS is positive, despite the expectations of certain economic agents.

scholarly journals The Impact of Government Debt on the Economic Growth of Ghana: A Time Series Analysis from 1990-2015

2015 ◽  
Vol 2 (5) ◽  
pp. 31-39 ◽  
Author(s):  
Lucy Anning ◽  
Collins Frimpong Ofori ◽  
Ernest Kwame Affum
Keyword(s):  
Economic Growth ◽  
World Bank ◽  
Negative Relationship ◽  
Secondary Data ◽  
Government Debt ◽  
Ordinary Least Squares ◽  
Poor Countries ◽  
High Dependency ◽  
Heavily Indebted Poor Countries ◽  
The Impact

In this study we investigate the impact of government debt on the economic growth of Ghana adopting the methodology of the simple Ordinary Least Squares with data spanning from 1990 to 2015. Ghana has unfortunately found itself in the tragic situation of high external government debt which has led to high dependency on aid and other loans to support its development. These aids and loans have seen the debt of Ghana rise steadily over the years. As a result of the Heavily-Indebted Poor Countries (HIPC) which was presented by the IMF and World Bank in 1999, Ghana was judged to be a HIPC with unsustainable debt enabling the country to benefit from debt relief. We investigate the impact of government debt (both external and domestic) by testing three related models at the domestic and external levels including the general growth of the Ghanaian economy. In constructing our dataset, we build on the study of many scholars including a substantial amount of new materials from both primary and secondary data sources being Ministry of Finance (MOF) or Treasury Latest actual data: Government Finance Statistics Manual (GFSM), Ghana and World Bank. The research findings revealed that there is a negative relationship between debt (domestic and external) and growth in the economy of Ghana and recommend among others that government debt borrowing should be discouraged while increasing the revenue base through tax reform programs is encouraged.

The Social Issue in the Company

2019 ◽  
Vol 5 (1) ◽  
pp. 37-43
Author(s):  
Abdelatif Kerzabi ◽  
Nawal Chemma
Keyword(s):  
World Bank ◽  
Negative Relationship ◽  
Secondary Data ◽  
Government Debt ◽  
Ordinary Least Squares ◽  
Poor Countries ◽  
High Dependency ◽  
Heavily Indebted Poor Countries ◽  
Research Findings ◽  
The Impact

In this study, we investigate the impact of government debt on the economic growth of Ghana adopting the methodology of the simple Ordinary Least Squares with data spanning from 1990 to 2015. Ghana has unfortunately found itself in the tragic situation of high external government debt which has led to high dependency on aid and other loans to support its development. These aids and loans have seen the debt of Ghana rise steadily over the years. As a result of the Heavily-Indebted Poor Countries (HIPC) which was presented by the IMF and World Bank in 1999, Ghana was judged to be a HIPC with unsustainable debt enabling the country to benefit from debt relief. We investigate the impact of government debt (both external and domestic) by testing three related models at the domestic and external levels including the general growth of the Ghanaian economy. In constructing our dataset, we build on the study of many scholars including a substantial amount of new materials from both primary and secondary data sources being Ministry of Finance (MOF) or Treasury Latest actual data: Government Finance Statistics Manual (GFSM), Ghana and World Bank. The research findings revealed that there is a negative relationship between debt (domestic and external) and growth in the economy of Ghana and recommend among others that government debt borrowing should be discouraged while increasing the revenue base through tax reform programs is encouraged.

scholarly journals The Impact of Chinese Purchases of U.S. Government Debt on the Treasury Yield Curve

2011 ◽  
Vol 11 (4) ◽  
pp. 1850244 ◽  
Author(s):  
Radhames A. Lizardo ◽  
Andre Varella Mollick
Keyword(s):  
Interest Rates ◽  
Yield Curve ◽  
Government Debt ◽  
Ceteris Paribus ◽  
Business World ◽  
Monthly Data ◽  
Percent Increase ◽  
Out Of Sample ◽  
The Impact ◽  
Side Variable

Examining monthly data from May of 1985 to May of 2008, we find that increases in Chinese purchases of U.S government debt lead to decreases in Treasury yields. The effect is stronger as the maturity increases: a one percent increase in purchases of U.S. Treasuries by Chinese investors lowers the two-year (ten-year) Treasury yield by 10 to 38 basis points (39 to 55 basis points) on average, ceteris paribus . Overall, the demand-side variable capturing Chinese purchases of U.S. Treasuries improves the cointegrating properties of U.S. interest rates. In-sample and out-of-sample forecasts reinforce that the model with Chinese purchases greatly outperforms basic models of the yield curve. This study has implications for the business world since we document that Chinese investors contribute to lower U.S. Treasury yields and thus to lower U.S. interest rates in general.

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