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Table 1 Regression on change in structural balance – income stabilization income shock

From: Automatic stabilization and discretionary fiscal policy in the financial crisis

 

Dependent variable: Change in str. balance 2007 to 2008-09

Variables

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Income stabilization coefficient income shock

-0.214***

-0.195***

-0.201***

-0.200***

-0.234***

-0.216***

-0.205**

 

(0.042)

(0.035)

(0.035)

(0.037)

(0.041)

(0.057)

(0.042)

Net interest payments

 

-0.738***

     
  

(0.234)

     

Debt / GDP

  

-0.040***

    
   

(0.013)

    

Fiscal Space 1

   

-0.945**

   
    

(0.356)

   

Fiscal Space 2

    

-8.666*

  
     

(4.605)

  

Openness

     

0.001

 
      

(0.011)

 

GDP per capita

      

0.012

       

(0.009)

Constant

10.148***

11.119***

12.166***

11.909***

11.613***

10.191***

8.279***

 

(1.527)

(1.294)

(1.407)

(1.469)

(1.623)

(1.725)

(2.048)

Observations

19

18

19

19

19

19

19

R 2

0.600

0.761

0.749

0.723

0.673

0.600

0.640

  1. Source: Data on change in structural balance from (IMF 2012). Standard errors in parentheses. *** p < 0.01, ** p < 0.05, * p < 0.1.
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