Table 12.

The effect of fiscal consolidation on social expenditure for the 2009–2014 period

	Dynamic Panel Estimation SGMM
	(1)	(2)	(3)	(4)	(5)	(6)
${\mathit{Sexp}}_{it-1}$	0.789*** (0.173)	0.732** (0.188)	0.797*** (0.115)	0.384*** (0.128)	0.395*** (0.133)	0.648*** (0.238)
${\mathit{fa}}_{\mathit{it}}$	−0.456** (0.187)	−0.221*** (0.072)	−0.301** (0.122)	−0.214** (0.086)	−0.210** (0.086)	−0.222*** (0.073)
${\mathit{corrup}}_{\mathit{it}}$		−1.527* (0.886)	−1.728* (1.558)	−0.910** (0.412)	−1.177** (0.504)	−0.722* (0.407)
${\mathit{debt}}_{\mathit{it}}$			0.077* (0.115)	0.025** (0.012)	−0.001 (0.019)	−0.012 (0.021)
${\mathit{gdpg}}_{\mathit{it}}$				−0.011 (0.011)	−0.049** (0.025)	−0.038* (0.021)
${\mathit{eldy}}_{\mathit{it}}$					0.128** (0.060)	0.081 (0.105)
${\mathit{young}}_{\mathit{it}}$						−0.007 (0.074)
N	207	115	114	114	114	114
Groups	23	23	23	23	23	23
N-instr	7	13	14	21	21	20
AR(1)	0.002	0.003	0.003	0.001	0.001	0.002
AR(2)	0.337	0.370	0.268	0.386	0.414	0.361
Hansen	0.559	0.881	0.200	0.484	0.360	0.744

Robust standard errors are in parentheses. Regressions are based on the Blundell-Bond estimator. Starting from the most parsimonious specification (column 1), we progressively introduce GDP growth, corruption, public debt, eldy and young population in columns (2)–(6). Significance level at which the null hypothesis is rejected: p < 0.1*; p < 0.05**; p < 0.01***