Table 19.

The effect of fiscal consolidations on social expenditure components for middle-income countries

	(1) G_health	(2) G_educ
${\mathit{exp}}_{it-1}$	0.796*** (0.073)	0.649*** (0.212)
${\mathit{fa}}_{\mathit{it}}$	−0.045** (0.025)	−0.128*** (0.039)
${\mathit{gdpg}}_{\mathit{it}}$	−0.007 (0.015)	−0.049** (0.019)
${\mathit{corrp}}_{\mathit{it}}$	−0.316** (0.151)	−0.333 (0.252)
${\mathit{debt}}_{\mathit{it}}$	0.001 (0.004)	−0.007 (0.262)
${\mathit{eldy}}_{\mathit{it}}$	0.003 (0.029)	0.066* (0.036)
${\mathit{young}}_{\mathit{it}}$	−0.007 (0.025)	0.019 (0.026)
N	144	143
groups	18	18
N-instr	18	18
AR(1)	0.055	0101
AR(2)	0.467	0.490
Hansen	0.439	0.273

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***