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The social consequences of the public debt increase in the developed and emerging economies

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  • Venger T.

    (Taras Shevchenko National University of Kyiv)

Abstract

Certain social consequences of the government debt increase are examined depending on the income and debt-to-GDP ratio level of the country. Nonlinear link between the government debt and the public expenditures on healthcare and education are revealed both in the developed and emerging markets. The public healthcare spending starts to decrease when the public debt exceeds 60% and 90% of GDP in the emerging and developed economies respectively. The expenditures on education diminish after debt-to-GDP ratio reaches 60%. The unemployment rate augments with the growth of the state debt.

Suggested Citation

  • Venger T., 2012. "The social consequences of the public debt increase in the developed and emerging economies," Bulletin of Taras Shevchenko National University of Kyiv. Economics. Вісник Киiвського нацiонального унiверситету iм. Тараса Шевченка. Серiя: Економiка, CyberLeninka;Издательско-полиграфический центр «Киевский университет», issue 141, pages 59-62.
    • Handle: RePEc:scn:013723:14937057
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