Table 1.

Determinants of fiscal balance (full sample)

	Dependent variable:${\mathit{FB}}_{i,t}$
	Pooled OLS (1)	FE (2)	RE (3)
${\mathit{FB}}_{i,t-1}$	0.67*** (0.02) [0.03]	0.53*** (0.02) [0.04]	0.67*** (0.02) [0.03]
${\mathit{CPV}}_{i,t}$	–0.04*** (0.01) [0.02]	–0.04*** (0.01) [0.02]	–0.04*** (0.01) [0.02]
$PC{\mathit{CP}}_{i,t}$	0.04*** (0.005) [0.007]	0.04*** (0.004) [0.006]	0.04*** (0.005) [0.007]
${\mathit{CAP}}_{i,t}$	0.001 (0.002) [0.002]	0.003 (0.002) [0.001]	0.001 (0.002) [0.002]
${\mathit{MI}}_{i,t}$	–0.23*** (0.05) [0.07]	–0.99*** (0.13) [0.29]	–0.23*** (0.05) [0.07]
${\mathit{RIR}}_{i,t}$	–0.02 (0.01) [0.01]	–0.04*** (0.01) [0.02]	–0.02 (0.01) [0.01]
${{\mathit{RIR}}_{i,t}\ast CPV}_{i,t}$	–0.004*** (0.001) [0.002]	–0.004*** (0.001) [0.002]	–0.004*** (0.001) [0.002]
R2	0.50	0.42	0.50
Periods	26	26	26
Countries	108	108	108
Observations	1937	1937	1937

Standard errors are presented below the corresponding coefficients in brackets. The asterisks ***, ** and * indicate the significance at the 1, 5 and 10 per cent level, respectively. Cluster standard errors are presented in square brackets