THE IMPACT OF FINANCIAL CRISIS ON PUBLIC DEBT: AN ANALYSIS OF PANEL DATA
THE IMPACT OF FINANCIAL CRISIS ON PUBLIC DEBT: AN ANALYSIS OF PANEL DATA
Author(s): Gargouri Ilhèm, Ksantini MajdiSubject(s): Economy
Published by: Editura Bibliotheca
Keywords: Public debt – Financial crisis – GDP Growth – inflation – Dynamic panel.
Summary/Abstract: This paper examines the impact of financial crises on public debt. We propose to analyze this relationship through a dynamic panel model. This model also includes other variables that may explain variations in debt ratio namely GDP growth and inflation. Our panel consists of nine European countries and the study period lasted from 2000 to 2012. This period can follow the changes in debt ratio principally during the subprime crisis. The results show that debt ratio increased significantly two years after the crisis beginning, the growth will reduce the public debt ratio and inflation has a positive and significant impact on debt ratio.
Journal: Revue Européenne du Droit Social
- Issue Year: 2015
- Issue No: 4 (29)
- Page Range: 67-86
- Page Count: 10