Theoretical and Applied Economics
No. 1 / 2014 (590)
Debt and economic growth: Is there any causal effect? An empirical analysis with structural breaks and Granger causality for Greece
University of Macedonia
Abstract. During the last decade Greece has faced many economic problems. The economy is teetering on the brink of bankruptcy and the debt deepens. In this paper we will examine whether the debt is promoting economic growth in Greece. We use time series data from 1980 to 2010. The data is fitted into the regression equation using econometric techniques such as Phillips – Perron, Augment Dickey – Fuller and KPSS. We are testing the variables with techniques such as Zivot Andrew’s, Perron’s and Bai Perron’s tests to find any structural breaks. Then we are testing to see if there is any causal effect in our model with Granger causality test. The results reveal that there are structural breaks in the economy of Greece but no causality between the variables.
Contents
Stochastic evolutionary cartel formation
Earnings analysis at industry level
Analysis of the correlation between the real estate loan stock and the average unit value of urban housing
Debt and economic growth: Is there any causal effect? An empirical analysis with structural breaks and Granger causality for Greece
Behavioral finance: biased individual investment decision making; like the company but dislike the investment
The role of community foundations in local development – Slovak experience
The role of small and medium enterprises in improving employment and in the post-crisis resumption of economic growth in Romania
The issue of competing currencies. Case study – Bitcoin
Test of the bank lending channel: The case of Hungary
The dimensions of the global financial crisis
Budgeting mechanisms in public administration – meeting today’s and tomorrow’s development challenges