The 90% public debt threshold: the rise and fall of a stylized fact

@article{gert2013The9P,
  title={The 90\% public debt threshold: the rise and fall of a stylized fact},
  author={Bal{\'a}zs {\'E}gert},
  journal={Applied Economics},
  year={2013},
  volume={47},
  pages={3756 - 3770}
}
We put the original Reinhart–Rogoff data-set, made public by Herndon et al. (2013), to a formal econometric test to identify public debt thresholds endogenously. We show that the nonlinear relation between debt and growth is not robust. Taken with a pinch of salt, our results suggest, however, that a negative association between central government debt and growth may set in at debt levels as low as 20% of GDP. Further (and greater) thresholds may exist, but their magnitude is uncertain. For… 
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