Table 9.

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_ONlessgrantsOFFOFF_ONlessgrantsOFF
Coef.Coef.Coef.Coef.Coef.Coef.
Variable(Std. Err.)(Std. Err.)(Std. Err.)(Std. Err.)(Std. Err.)(Std. Err.)
L1.OFF_ONlessgrantsOFF−0.3056 (0.0249)***−0.3056 (0.0739)***−0.1415 (0.0231)***−0.1415 (0.2937)0.1462 (0.0488)***0.1462 (0.1685)
L2.OFF_ONlessgrantsOFF−0.1519 (0.0178)***−0.1519 (0.0461)***0.0392 (0.0182)**0.0392 (0.0558)−0.0883 (0.0239)***−0.0883 (0.0471)*
L3.OFF_ONlessgrantsOFF−0.1054 (0.0166)***−0.1054 (0.0470)**0.2838 (0.0361)***0.2838 (0.1654)*−0.0092 (0.0196)−0.0092 (0.0427)
ln_ON_pop−0.1689 (0.0098)***−0.1689 (0.0353)***−0.1158 (0.0136)***−0.1158 (0.0421)***−0.0863 (0.0152)***−0.0863 (0.0381)**
Grants0.0556 (0.0305)*0.0556 (0.0746)−0.0729 (0.0273)***−0.0729 (0.0816)−0.0416 (0.0265)−0.0416 (0.0391)
L1.Debt fiscal limit H1A0.0023 (0.0022)0.0023 (0.0035)0.0308 (0.0049)***0.0308 (0.0122)**0.0026 (0.0012)**0.0026 (0.0019)
MOC debt share H30.1191 (0.0175)***0.1191 (0.0367)***0.0838 (0.0224)***0.0838 (0.0457)*0.0466 (0.0115)***0.0466 (0.0198)**
Growth0.0327 (0.0061)***0.0327 (0.0180)*−0.0070 (0.0075)−0.0070 (0.0240)−0.0331 (0.0096)***−0.0331 (0.0280)
year20130.0012 (0.0018)0.0012 (0.0030)0.0046 (0.0022)**0.0046 (0.0041)−0.0012 (0.0013)−0.0012 (0.0029)
year20150.0178 (0.0029)***0.0178 (0.0062)***−0.0289 (0.0037)***−0.0289 (0.0106)***0.0224 (0.0033)***0.0224 (0.0053)***
year20170.0316 (0.0043)***0.0316 (0.0091)***0.0056 (0.0025)**0.0056 (0.0075)0.0263 (0.0053)***0.0263 (0.0105)**
year20180.0404 (0.0046)***0.0404 (0.0113)***0.0048 (0.0045)0.0048 (0.0157)0.0246 (0.0061)***0.0246 (0.0128)*
year0.0008 (0.0000)***0.0008 (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 test1615.44***334.87***1819.25***537.51***1622.37***706.93***
Sargan test54.523254.523248.240548.240564.358764.3587
 0.00190.00190.01010.01010.00010.0001
Arellano–Bond test AR(1)−0.6724−0.5838−1.3634−1.0912−1.4102−1.3120
 0.50130.55930.17280.27520.15850.1895
AR(2)1.17870.8688−1.3797−0.58110.70620.6193
 0.23850.38500.16770.56120.48000.5357

Notes:

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

Source: Authors’ work

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