Table 14.

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

	(1) G_health	(2) G_educ
${\mathit{exp}}_{it-1}$	0.675*** (0.131)	0.651* (0.376)
${\mathit{fa}}_{\mathit{it}}$	−0.096*** (0.019)	−0.252*** (0.083)
${\mathit{gdpg}}_{\mathit{it}}$	−0.052** (0.023)	−0.006 (0.053)
${\mathit{corrp}}_{\mathit{it}}$	−0.092 (0.287)	−0.667* (0.342)
${\mathit{debt}}_{\mathit{it}}$	−0.009 (0.007)	−0.001 (0.011)
${\mathit{eldy}}_{\mathit{it}}$	0.036 (0.051)	0.001 (0.979)
${\mathit{young}}_{\mathit{it}}$	−0.012 (0.029)	−0.009 (0.021)
N	114	112
groups	23	23
N-instr	20	18
AR(1)	0.025	0.109
AR(2)	0.519	0.834
Hansen	0.801	0.775

Robust standard errors are in parentheses. Regressions are based on the Blundell-Bond estimator. G_health and G_educ are predetermined, GDP growth. Eldy and young population are exogenous, and the remaining covariates are endogenous. Significance level at which the null hypothesis is rejected: p < 0.1*; p < 0.05**; p < 0.01***