Government debt accumulation and non-performing loans: An ARDL bounds testing approach

نویسندگان

چکیده

Following the financial and debt crises in euro area global COVID pandemic, governments supported their economies by increasing borrowing accumulating with ambiguous long-run effects on non-performing loans (NPLs). We empirically investigate determinants of NPLs using quarterly (2003Q1-2020Q2) aggregate data for Greece applying autoregressive distributed lag (ARDL) bounds testing approach. offer new policy-making relevant evidence showing that government has a significant positive long-term impact irrespective possible short-term dynamics appear to provide temporary relief. Fiscal balance, contrary, exerts negative effect justifying quest surpluses post-COVID.

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ژورنال

عنوان ژورنال: Economics and Business Letters

سال: 2022

ISSN: ['2254-4380']

DOI: https://doi.org/10.17811/ebl.11.4.2022.150-160