Political myopia, public debt, and economic growth

Can economic growth increase public debt? Previous studies on the debt-growth nexus focused on the effects of debt on growth. We present an opposite perspective by showing that growth can reinforce deficit spending. A political economy model of endogenous public debt indicates that the underlying ca...

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Bibliographic Details
Main Authors: Raveh, O, Tsur, Y
Format: Working paper
Published: University of Oxford 2017