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Table 2 Regression on change in structural balanceincome 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.