Table 21.

Flexible exchange rate regime: estimation results for Eq. 7—Robustness check

	(1)	(2)	(3)	(4)
Dependent variable is ${\widehat{\beta }}_{\mathit{it}},$ cyclicality coefficient of government expenditure
Fiscal Rules Index	− 0.303$\ast$	− 0.352$\ast \ast$	− 0.285$\ast$	− 0.330$\ast$
	(− 1.836)	(− 1.967)	(− 1.835)	(− 1.695)
Bureaucracy quality	− 0.436$\ast \ast \ast$	− 0.511$\ast \ast \ast$	− 0.442$\ast \ast \ast$	− 0.525$\ast \ast$
	(− 3.048)	(− 3.877)	(− 3.018)	(− 2.543)
Natural resource rents	− 0.027$\ast \ast$	− 0.028$\ast \ast$	− 0.028$\ast \ast$	− 0.026$\ast$
	(− 2.233)	(− 2.322)	(− 2.425)	(− 1.884)
Inflation targeting	− 0.364$\ast$		− 0.336$\ast$	− 0.195
	(− 1.893)		(− 1.731)	(− 0.768)
Chinn-Ito Index	0.223	0.101		0.175
	(0.792)	(0.307)		(0.505)
Herfindahl Index of Gov. Pol.	− 0.247	− 0.216	− 0.250
	(− 0.954)	(− 0.821)	(− 0.963)
Lagged debt to GDP ratio	− 0.001	− 0.001	− 0.001	0.000
	(− 0.750)	(− 0.717)	(− 0.777)	(0.007)
Log(GDP per capita)				0.434
				(0.667)
Obs	809	809	840	1012
N_g	67	67	69	70
hansenp	0.4244	0.5061	0.4158	0.2802
sarganp	0.0700	0.0567	0.0719	0.1215

t statistics in parentheses

*$p<0.10$; **$p<0.05$; ***$p<0.01$