Household Debt and Country Economic Growth: Does a Magic Threshold Exist?

Government Size Threshold and Economic Growth in Iran

We apply the two-sector production function developed by Ram (1986) to estimate the threshold regression model for Iran, concerning the effect of government size on economic growth. Three government size indicators are used to find out the different threshold points. The results show a non-linear relationship of the Armey curve in Iran, in which the threshold effects corresponding to total gove...

China’s Local Government Debt and Economic Growth

This paper explores the impact of China’s local government debt on economic growth. This analysis, based on a panel of 31 provinces over 14 years, takes into account a broad range of economic growth determinants as well as various estimation issues including heteroskedascity and omitted variable. The empirical results suggest an inverse relationship between China’s local government debt and eco...

Public Debt, Corruption and Sustainable Economic Growth

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 ...

Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff

We replicate Reinhart and Rogoff (2010a and 2010b) and find that coding errors, selective exclusion of available data, and unconventional weighting of summary statistics lead to serious errors that inaccurately represent the relationship between public debt and GDP growth among 20 advanced economies in the postwar period. Our finding is that when properly calculated, the average real GDP growth...

Does Inflation Harm Economic Growth In Iran?