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Table 7 Basic model and extended specifications, feasible GLS

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

0.729***

(0.064)

0.659***

(0.076)

0.714***

(0.065)

0.730***

(0.064)

0.731***

(0.064)

0.726***

(0.065)

0.712***

(0.065)

0.650***

(0.076)

Lagged CGD

0.013**

(0.007)

0.005**

(0.001)

0.010**

(0.002)

0.013*

(0.006)

0.012*

(0.007)

0.013*

(0.007)

0.009**

(0.001)

0.005*

(0.001)

INTP

  

0.038**

(0.013)

   

0.041**

(0.015)

0.022**

(0.003)

CAB

   

− 0.001

(0.004)

  

− 0.001

(0.004)

− 0.002

(0.003)

YVAR

    

0.176

(0.795)

 

0.006

(0.812)

0.818

(0.820)

EY

     

0.126***

(0.005)

0.147***

(0.059)

0.471***

(0.232)

Constant

− 0.106

(0.239)

0.326

(0.449)

− 0.114

(0.237)

− 0.107

(0.240)

− 0.099

(0.243)

− 0.128

(0.247)

− 0.138

(0.247)

0.183

(0.346)

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

Diagnostic test

M-Wald test

[0.064]

[0.159]

[0.110]

[0.650]

[0.522]

[0.116]

[0.220]

[0.882]

  1. italic values denote main variable of interest
  2. ***, **,*1%, 5% and 10% significance level; [] = p value