Table 8.

Results for the debt fiscal limit impact on the off-budget activities of urban, rural and urban–rural municipalities (LGs)

Urban LGsRural LGsUrban–rural LGs
WC-RobustWC-RobustWC-Robust
OFF_ONlessgrantsOFFOFF_ONlessgrantsOFFOFF_ONlessgrantsOFFOFF_ONlessgrantsOFFOFF_
ONlessgrantsOFF
OFF_
ONlessgrantsOFF
Coef.Coef.Coef.Coef.Coef.Coef.
Variable(Std. Err.)(Std. Err.)(Std. Err.)(Std. Err.)(Std. Err.)(Std. Err.)
L1.OFF_ONlessgrantsOFF−0.3253 (0.0276)***−0.3253 (0.0850)***−0.1287 (0.0225)***−0.1287 (0.1723)0.1829 (0.0591)***0.1829 (0.1930)
L2.OFF_ONlessgrantsOFF−0.1667 (0.0177)***−0.1667 (0.0524)***0.0595 (0.0178)***0.0595 (0.1240)−0.0919 (0.0249)***−0.0919 (0.0546)*
L3.OFF_ONlessgrantsOFF−0.0951 (0.0173)***−0.0951 (0.0529)*0.3011 (0.0363)***0.3011 (0.2214)−0.0113 (0.0208)−0.0113 (0.0430)
ln_ON_pop−0.1843 (0.0130)***−0.1843 (0.0327)***−0.1276 (0.0133)***−0.1276 (0.0349)***−0.0825 (0.0159)***−0.0825 (0.0399)**
Grants0.0389 (0.0343)0.0389 (0.0766)−0.0932 (0.0278)***−0.0932 (0.0709)−0.0446 (0.0276)−0.0446 (0.0385)
L1.Debt fiscal limit H1A0.0036 (0.0022)*0.0036 (0.0038)0.0346 (0.0046)***0.0346 (0.0130)***0.0269 (0.0038)***0.0269 (0.0058)***
Debt_per capita H2−0.0011 (0.0010)−0.0011 (0.0041)−0.0038 (0.0020)*−0.0038 (0.0053)−0.0004 (0.0012)−0.0004 (0.0018)
Growth0.0376 (0.0063)***0.0376 (0.0162)**−0.0017 (0.0066)−0.0017 (0.0229)−0.0382 (0.0105)***−0.0382 (0.0311)
year2013−0.0008 (0.0020)−0.0008 (0.0031)0.0011 (0.0023)0.0011 (0.0051)−0.0020 (0.0013)−0.0020 (0.0026)
year20150.0217 (0.0035)***0.0217 (0.0069)***−0.0317 (0.0037)***−0.0317 (0.0102)***−0.0233 (0.0034)***−0.0233 (0.0050)***
year20170.0388 (0.0051)***0.0388 (0.0095)***0.0083 (0.0023)***0.0083 (0.0056)0.0034 (0.0029)0.0034 (0.0070)
year20180.0460 (0.0058)***0.0460 (0.0108)***0.0093 (0.0041)***0.0093 (0.0108)0.0013 (0.0041)0.0013 (0.0100)
year0.0009 (0.0001)***0.0009 (0.0001)***0.0006 (0.0001)***0.0006 (0.0002)***0.0004 (0.0001)***0.0004 (0.0002)***
Number of observations9019017447441,4871,487
Number of groups172172175175311311
Number of instruments414141414141
Wald test1279.53***275.53***1813.54***351.45***1550.02***673.82***
Sargan test57.635357.635346.945246.945264.150264.1502
 0.00080.00080.01390.01390.00010.0001
Arellano–Bond test AR(1)−0.7697−0.6296−1.3910−1.2548−1.5209−1.3726
 0.44150.52890.16420.20950.12830.1699
AR(2)0.88840.6254−1.6153−0.55640.68780.5710
 0.37430.53170.10620.57790.49160.5680

Notes:

*p < 0.1; **p < 0.05; ***p < 0.01; Std. Err. in brackets

Source: Authors’ work

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