Beyond inconclusive empirical research, this paper examines the theoretical literature concerning public debt and economic growth finding no univocal and straightforward answer. No meaningful assessment of debt and its effect on growth at any point in time is possible without reference to the whole debt trajectory and the specific state of the economy along the trajectory. An orderly and consistent analysis may be developed along two coordinates of debt assessment: sustainability/ unsustainability, and efficiency/inefficiency. In our view, research should concentrate on the study of specific conditions and cases, and abandon the pursuit of a general law.

Keywords: Public debt, Debt burden, Debt sustainability, Economic growth, Endogenous growth models. JEL Codes: E62, H63, O40