Chen, Hong and Narayan, Diviya and Singh, Baljeet (2026) Re - Visiting the Debt – Output Nexus from the Perspectives of Long-Term Trend and Short-Term Volatility: An Application of the Threshold Model. Bulletin of Monetary Economics and Banking, 29 (1). pp. 97-118. ISSN 1410-8046
Full text not available from this repository.Abstract
Using the Hamilton filter and the panel threshold model, this study provides new evidence of the threshold effects of debt on output in 14 Asia-Pacific countries over the
period 2005 to 2019. In the long term, we found a threshold debt value of 73.5 percent of GDP, below which debt has a positive effect on GDP, and the positive effect turns
negative when debt goes above the threshold level. In the short term, we noted that debt volatility reduces output volatility, and the impact is greater with larger negative
fluctuations in debts. The findings have important policy implications.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HA Statistics H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce H Social Sciences > HJ Public Finance |
| Divisions: | School of Accounting, Finance and Economics (SAFE) |
| Depositing User: | Diviya Narayan |
| Date Deposited: | 16 Feb 2026 00:01 |
| Last Modified: | 16 Feb 2026 00:01 |
| URI: | https://repository.usp.ac.fj/id/eprint/15271 |
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