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

VARIABLES

Coef

t

P > |t|

Economic cycle ( $y_{it}$ )

1.401

2.080

0.092

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

0.790

5.110

0.004

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

−0.001

−1.440

0.210

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

0.071

3.680

0.014

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

1.239

2.110

0.088

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

−0.663

−3.200

0.024

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

−0.000

−0.680

0.524

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

0.000

2.070

0.093

DUM

−0.057

−1.020

0.356

Constant

0.101

2.300

0.070

Comments

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