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Table 2 Regression on change in structural balance – income stabilization unempl 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 unempl. shock

−0.089***

−0.096***

−0.103***

−0.096***

−0.106***

−0.071*

−0.083**

 

(0.028)

(0.021)

(0.020)

(0.023)

(0.029)

(0.035)

(0.029)

Net interest payments

 

−1.057***

     
  

(0.259)

     

Debt / GDP

  

−0.060***

    
   

(0.014)

    

Fiscal Space 1

   

−1.371***

   
    

(0.408)

   

Fiscal Space 2

    

−9.687

  
     

(6.149)

  

Openness

     

−0.011

 
      

(0.012)

 

GDP per capita

      

0.012

       

(0.012)

Constant

6.268***

8.893***

10.529***

9.824***

7.783***

6.147***

4.556*

 

(1.228)

(1.107)

(1.336)

(1.434)

(1.520)

(1.239)

(2.195)

Observations

19

18

19

19

19

19

19

R 2

0.368

0.700

0.700

0.630

0.453

0.401

0.401

  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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