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Table 2 Impact of consolidation on unemployment, action-based fiscal policy variables 13 countries EU, 1980-2009

From: Fiscal consolidation and unemployment: does EPL matter?: A look at EU countries

  (1) (3) (3)
Dependent variable: unemployment rate Budget balance Revenue Expenditure
Explanatory variables action-based action-based action-based
Unemployment (1 lag) 1.459** 1.481** 1.457**
  [22.84] [21.55] [21.83]
Unemployment (2 lags) −0.589** −0.603** −0.589**
  [−10.53] [−9.981] [−10.65]
Fiscal policy variable 0.129+ 0.145 −0.179*
  [2.132] [1.138] [−2.920]
Constant 0.970** 0.928** 0.987**
  [4.624] [4.415] [4.509]
Observations 353 353 353
R-squared 0.928 0.927 0.928
Number of countries 13 13 13
  1. +, *, ** denote statistical significance at the 10, 5, 1 per cent level respectively. T tests are reported in square brackets.
  2. Specification. All regressions include country and year fixed effects.
  3. Estimation method. fixed effect panel OLS, standard errors robust with respect to hetereoschedasticity and non-independence within country clusters.
  4. Legend: for a description of the fiscal variables see notes to Table 1.