Public Debt and Economic Growth: There Is No ‘Tipping Point’

by Markus Eberhardt and Andrea F. Presbitero, Voxeu.org Published at Voxeu.org 17 November 2013 The idea that there is a common tipping point in the relationship between public debt and economic growth is still widespread. However, this is likely due to a misinterpretation of the existing evidence. Once we allow for the relationship between debt …