Econometric models for my dissertation

[Varsha]

Hello everybody :) I am doing my dissertation on the impact of public debt on the economic growth and fiscal policy of my country (Mauritius). Iv been asked, by my supervisor, to select and construct my models ( minimum 3), and I have no idea on how to proceed :/ please help me. What models can I use?

[eobumneke]

Hello,

The choice of variables you could use in your model determines your theoretical framework.

You could have two different models that you will have to regress (1)GDP growth rates on your choice public debt variables and the second(2) will have proxy variable for fiscal policy that you will regress too on your choice public debt variables derived from your theoretical framework. Finally, the third model could contain how fiscal-public debt mix could be used as an explanatory variables for economic growth(GDP growth rate) as a regressor. Hope it helps... Good-luck

[sanjibseviews]

i am sure there are several empirical studies on this topic. reading those will be your starting point, for example, http://ideas.repec.org/p/ecb/ecbwps/20101237.html
later you may also explore setting up a simultaneous equation model. best wishes.