Table 5.

The effect of fiscal consolidations on social expenditure components

	(1) G_health	(2) G_educ
${\mathit{exp}}_{it-1}$	0.880*** (0.073)	0.899*** (0.147)
${\mathit{fa}}_{\mathit{it}}$	−0.052*** (0.017)	−0.107** (0.047)
${\mathit{gdpg}}_{\mathit{it}}$	−0.035*** (0.005)	−0.002 (0.020)
${\mathit{corrp}}_{\mathit{it}}$	−0.018 (0.115)	−0.262* (0.145)
${\mathit{debt}}_{\mathit{it}}$	−0.009*** (0.003)	0.002* (0.008)
${\mathit{eldy}}_{\mathit{it}}$	0.029 (0.029)	0.017 (0.027)
${\mathit{young}}_{\mathit{it}}$	0.005 (0.017)	0.009 (0.017)
N	207	204
groups	23	23
N-instr	21	23
AR(1)	0.038	0.015
AR(2)	0.214	0.116
Hansen	0.552	0.649

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***