The spreadsheet range that left countries out
In 2010, a famous economics paper argued that when a country's public debt passes 90% of GDP, economic growth drops sharply, a finding cited by politicians around the world to justify austerity budgets. Three years later, when a graduate student obtained the authors' original working spreadsheet, he discovered that a spreadsheet range had accidentally left five countries out of one calculation. Their critique also identified other data and methodological choices; the coding error alone was not the whole dispute.
Questions you could explore
- How can an innocent-looking range change a result?
- Which disagreements remain after a spreadsheet error is fixed?
Start reading
- Political Economy Research Institute, University of Massachusetts AmherstDoes High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff
The authors explain the spreadsheet omission and the separate methodological choices in their reanalysis.
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