The Debt-to-Threshold Effect On Output: A Country-Specific Analysis
Luke Lechtenberg
Abstract
Abstract: The recent economics literature has focused on establishing a general debt-to-GDP threshold across countries where output growth becomes negatively affected. This paper, conversely, attempts to establish debt-to-GDP thresholds for individual countries, the purpose of which is to show that a country’s
fiscal policy decisions should be based on data specific to that country, which should foster more informed and prudent policy making.
