Gianni Carvelli

This article examines the effects of public debt on aggregate growth and some of its main channels utilising a larger dataset than those employed in most pre-COVID studies. We build a conditionalconvergence framework by performing a panel analysis that accommodates the autoregressive behaviour of the response variable. We discuss the difference-GMM and system-GMM techniques, focusing on critical issues inherent to such methods within the context of the debt-growth analyses, especially as concerns the internal instrument proliferation that typically arises when T is large...