Resumen de Financial bubbles and sustainability of public debt: the case of Spain

Vicente Esteve, María Asunción Prats Albentosa

• In this paper the dynamics of the Spanish public debt-GDP ratio is analysed during the period 1850-2020. We use a recent procedure to test for recurrent explosive behaviour (Phillips, Wu and Yu, 2011, and Phillips, Shi and Yu, 2015a, 2015b) in order to identify episodes of explosive public debt dynamics and also the episodes of Öscal adjustments over this long period.