Table 10.

The effect of fiscal consolidation on total and social expenditure (POLS and FE) for the 2009–2014 period

	POLS		FE
	(1)	(2)	(1)	(2)
	Total expenditure	Social expenditure	Total expenditure	Social expenditure
${\mathit{exp}}_{it-1}$	0.986*** (0.027)	0.916*** (0.047)	0.401*** (0.097)	0.649* (0.257)
${\mathit{fa}}_{\mathit{it}}$	−0.572*** (0.166)	−0.225*** (0.077)	−0.479*** (0.079)	−0.455*** (0.173)
${\mathit{gdpg}}_{\mathit{it}}$	−0.006 (0.024)	−0.005 (0.011)	−0.072 (0.077)	−0.038 (0.083)
${\mathit{corrup}}_{\mathit{it}}$	−0.021 (0.295)	−0.097 (0.138)	−1.424* (0.867)	−2.087** (0.923)
${\mathit{debt}}_{\mathit{it}}$	−0.001 (0.010)	−0.005 (0.004)	−0.028 (0.043)	0.001 (0.045)
${\mathit{eldy}}_{\mathit{it}}$	−0.016 (0.071)	−0.010 (0.033)	0.755 (0.685)	−0.010 (0.702)
${\mathit{young}}_{\mathit{it}}$	0.002	−0.009	0.207	−0.007
	(0.052)	(0.021)	(0.433)	(0.074)
Constant	0.823 (2.370)	1.565* (0.902)	12.111** (16.111)	38.054** (15.518)
N	110	110	114	114
R-squared	0.963	0.865	0.654	0.402
Groups	23	23	23	23
Hausman			37.04**	35.18***

Robust standard errors are in parentheses Significance level at which the null hypothesis is rejected: p < 0.1*; p < 0.05**; p < 0.01***. The dependent variable is total government spending in model (1) and social spending in model (2)