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Macro-financial implications of public debt in South Africa: The role of financial regimes

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  • Theshne Kisten

Abstract

This paper examines the role of financial frictions in the public debt-growth nexus, documenting that a public debt shock has different macro-financial implications dependent on the state of financial markets in South Africa. A non-linear vector autoregression model is estimated which allows the transmission mechanism to be characterized by two distinct financial regimes: stressful versus normal.

Suggested Citation

  • Theshne Kisten, 2023. "Macro-financial implications of public debt in South Africa: The role of financial regimes," WIDER Working Paper Series wp-2023-76, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-76
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    References listed on IDEAS

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    Keywords

    Public debt; South Africa; Regression analysis; Financial dynamics;
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