| Compliance with estimated threshold SB ≥ −10.92% of GDP | Non-compliance with estimated threshold SB < −10.92% of GDP | ||
Variables | Estimator within | Estimator GMM in system | Estimator within | Estimator GMM in system |
DDBi,t | 4.23*** (0.76) | 11.5*** (6.08) | 0.65 (0.76) | 99.19 (89.43) |
ICij,t | 28.34*** (5.79) | 14.12 (40.54) | 26.88** (6.57) | −14.88 (30.07) |
CFij,t-1 | 12.89* (5.67) | −2.67 (25.98) | 17.45** (9.34) | −21.71 (13.61) |
Sij,t-1 |
| 0.01 (0.06) |
| 0.08 (0.05) |
Observations | 285 | 285 | 285 | 283 |
Country peers | 16 | 16 | 16 | 17 |
R2 (within) | 0.3468 |
| 0.2965 |
|
Estimation using the instrumental variables method | ||||
Exogenous variables | ICij,t |
| ICij,t |
|
ξijt | 16.34*** (0.87) |
| 16.33*** (0.65) |
|
DDBi,t | −0.0007 (0.004) |
| 0.005*** (0.002) |
|
CFij,t-1 | −0.03 (0.01) |
| −0.03 (0.01) |
|
Generalized Method of Moments (GMM) | ||||
AR (2) | 0.08 [0.77] |
|
| −074 [0.301] |
Hansen Test (exogenous instruments) | 21 [0.13] |
|
| 9.02 [0.12] |
Number of instruments | 34 |
|
| 18 |
F-stat | 26.32 |
|
| 33.67 |