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| Nazmus Sadat Khan |
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| ''In search of causality between debt and growth: a graph theoretic approach'' |
| ( 2016, Vol. 36 No.2 ) |
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| This paper detects the direction of causality between government debt and economic growth in a multivariate framework using graph theoretic approach for six major OECD countries. The results show that growth causes debt in most countries. A comparison between the full sample and a reduced sample (leaving out the periods of recent financial crisis) indicates that the causal direction from growth to debt is a more recent phenomenon. |
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| Keywords: government debt, economic growth, graph theory, causality analysis |
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
H6 - National Budget, Deficit, and Debt: General |
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| Manuscript Received : Nov 11 2015 | | Manuscript Accepted : Apr 14 2016 |
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