Document Type

Working Paper

Publication Date

7-1-2015

Working Paper Number

WP #15014, July 2015

Abstract

We reexamine the Reinhart and Rogoff (2010, AER) government debt dataset and present graphical evidence that supports the hypothesis that periods of slow economic growth cause debt levels to rise. In particular, low growth periods are clustered temporally, suggesting a common cause; low growth rates predict an increase in debt, even after conditioning on the debt level; and countries with high debt levels grow at roughly the same rate as those with low debt levels when we compare countries at similar points in time.

JEL Classification

E6, F4

File Format

application/pdf

Length

9 pages

Included in

Economics Commons

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