Nonlinear effects of government debt on private consumption: Evidence from OECD countries

Dooyeon Cho; Dong Eun Rhee

doi:10.1016/j.econlet.2013.10.013

Nonlinear effects of government debt on private consumption: Evidence from OECD countries

Dooyeon Cho, Dong Eun Rhee

Research output: Contribution to journal › Article › peer-review

8 Citations (Scopus)

Abstract

This paper investigates nonlinear effects of government debt on private consumption. The estimated consumption function shows smooth regime switching depending on the debt-to-GDP ratio, and a higher level of government debt crowds out private consumption to a greater extent.

Original language	English
Pages (from-to)	504-507
Number of pages	4
Journal	Economics Letters
Volume	121
Issue number	3
DOIs	https://doi.org/10.1016/j.econlet.2013.10.013
Publication status	Published - 2013 Dec
Externally published	Yes

Keywords

Consumption
Government debt
Nonlinearity
Panel smooth transition regression error correction model

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2013.10.013

Cite this

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title = "Nonlinear effects of government debt on private consumption: Evidence from OECD countries",

abstract = "This paper investigates nonlinear effects of government debt on private consumption. The estimated consumption function shows smooth regime switching depending on the debt-to-GDP ratio, and a higher level of government debt crowds out private consumption to a greater extent.",

keywords = "Consumption, Government debt, Nonlinearity, Panel smooth transition regression error correction model",

author = "Dooyeon Cho and Rhee, {Dong Eun}",

note = "Funding Information: This is a revised version of a KIEP Working Paper. The authors are grateful to Young-Joon Park and Ju Hyun Pyun for their helpful comments and suggestions. All remaining errors are the authors{\textquoteright} responsibility. Dooyeon Cho also acknowledges that this work was supported in part by the New Faculty Research Program 2013 of Kookmin University in Korea . Copyright: Copyright 2013 Elsevier B.V., All rights reserved.",

year = "2013",

month = dec,

doi = "10.1016/j.econlet.2013.10.013",

language = "English",

volume = "121",

pages = "504--507",

journal = "Economics Letters",

issn = "0165-1765",

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T1 - Nonlinear effects of government debt on private consumption

T2 - Evidence from OECD countries

AU - Cho, Dooyeon

AU - Rhee, Dong Eun

N1 - Funding Information: This is a revised version of a KIEP Working Paper. The authors are grateful to Young-Joon Park and Ju Hyun Pyun for their helpful comments and suggestions. All remaining errors are the authors’ responsibility. Dooyeon Cho also acknowledges that this work was supported in part by the New Faculty Research Program 2013 of Kookmin University in Korea . Copyright: Copyright 2013 Elsevier B.V., All rights reserved.

PY - 2013/12

Y1 - 2013/12

N2 - This paper investigates nonlinear effects of government debt on private consumption. The estimated consumption function shows smooth regime switching depending on the debt-to-GDP ratio, and a higher level of government debt crowds out private consumption to a greater extent.

AB - This paper investigates nonlinear effects of government debt on private consumption. The estimated consumption function shows smooth regime switching depending on the debt-to-GDP ratio, and a higher level of government debt crowds out private consumption to a greater extent.

KW - Consumption

KW - Government debt

KW - Nonlinearity

KW - Panel smooth transition regression error correction model

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DO - 10.1016/j.econlet.2013.10.013

M3 - Article

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VL - 121

SP - 504

EP - 507

JO - Economics Letters

JF - Economics Letters

IS - 3

ER -

Nonlinear effects of government debt on private consumption: Evidence from OECD countries

Abstract

Keywords

ASJC Scopus subject areas

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