Why Public Debt Hurts Innovation

1,087 views · Published 6 December 2018 · 3:33 · Indexed 10 November 2026

Channel: Bocconi University · 2018 · Education

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New research by Bocconi’s Mariano Max Croce and colleagues finds that public debt is bad for growth also because it hinders innovative firms’ investment. «By affecting their cost of capital, movements in government debt impact firms’ investment and, critically, innovation decisions», Max Croce, Professor of Finance at Bocconi University, says.

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