Outcome variable: Cyclical component of total government spending (CGE)

VARIABLES

Coef

t

P > |t|

Economic cycle ( $y_{it}$ )

1.401

2.340

0.021

Discretionary fiscal policy ( $CG{E}_{it-1}$ )

0.790

3.250

0.002

Sustainability constraint on government debt ( $d_{it-1}$ )

−0.001

−2.160

0.033

Regulatory quality ( $R{Q}_{it}$ )

0.071

1.170

0.244

Interaction terms ( $y_{it}\ast R{Q}_{it}$ )

1.239

2.270

0.025

Fluctuations in the terms of trade ( $T{E}_{it}$ )

−0.663

−2.530

0.013

GDP per capita ( $PIB{H}_{it}$ )

−0.000

−0.440

0.660

Inflation ( $INFL{T}_{it}$ )

0.000

1.520

0.132

DUM

−0.057

−0.900

0.372

Constant

0.101

1.250

0.215

Comments

120

Number of id

6

Number of inst

28

AR (1)

−3.170

0.002

AR (2)

0.190

0.851

Sargan

0.177

Prob > F

0.048