From: Debt sustainability and the fiscal reaction function: evidence from MIST countries
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
---|---|---|---|---|---|---|---|---|
Dependent variables: primary balance (PB) | ||||||||
Lagged PB | 0.683*** (0.069) | 0.575*** (0.098) | 0.668*** (0.069) | 0.677*** (0.069) | 0.683*** (0.070) | 0.683*** (0.069) | 0.654*** (0.070) | 0.596*** (0.099) |
Lagged CGD | 0.019** (0.009) | 0.012** (0.002) | 0.015** (0.002) | 0.023** (0.009) | 0.019** (0.009) | 0.020** (0.009) | 0.020** (0.009) | 0.013** (0.004) |
INTP | 0.061* (0.033) | 0.075** (0.035) | 0.026** (0.005) | |||||
CAB | − 0.006 (0.005) | − 0.009 (0.006) | − 0.003 (0.038) | |||||
YVAR | 0.038 (0.928) | 0.060 (0.954) | 0.815 (0.901) | |||||
EY | 0.165*** (0.019) | 0.150*** (0.021) | 0.368*** (0.091) | |||||
Constant | − 0.237 (0.309) | 0.271 (0.573) | − 0.310 (0.308) | − 0.365 (0.333) | − 0.240 (0.317) | − 0.275 (0.317) | − 0.560 (0.346) | 0.149 (0.346) |
R2 | 0.525 | 0.748 | 0.540 | 0.530 | 0.530 | 0.526 | 0.552 | 0.757 |
No. of observation | 108 | 108 | 108 | 108 | 108 | 108 | 108 | 108 |
Country FE | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Time FE | No | Yes | No | Yes | No | No | No | Yes |
Hausman | [0.004] | [0.017] | [0.043] | [0.012] | [0.049] | [0.041] | [0.033] | [0.037] |
Diagnostic test | ||||||||
B-P LM | [0.049] | [0.049] | [0.117] | [0.072] | [0.050] | [0.039] | [0.239] | [0.289] |
CD test | [0.001] | [0.001] | [0.002] | [0.001] | [0.001] | [0.000] | [0.004] | [0.002] |
M-Wald test | [0.000] | [0.000] | [0.000] | [0.000] | [0.000] | [0.000] | [0.000] | [0.000] |