Coefficient Estimates of Equation (1) for debt at each horizon
| Regressor\horizon | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Shock | 5.240*** (0.943) | 6.249*** (1.194) | 7.425*** (1.556) | 7.826*** (1.826) | 8.715*** (1.935) |
| Shock t−1 | 0.485 (0.782) | 1.71 (1.159) | 3.275** (1.464) | 5.779*** (81.692) | 6.553*** (1.814) |
| Shock t−2 | 1.041 (0.740) | 2.251** (0.095) | 4.761*** (1.348) | 5.627*** (1.611) | 8.411*** (1.776) |
| Debt t−1 | 0.058 (0.081) | 0.097 (0.120) | 0.034 (0.156) | 0.060 (0.167) | 0.023 (0.175) |
| Debt t−2 | 0.076 (0.075) | 0.020 (0.094) | 0.062 (0.125) | 0.047 (0.127) | 0.025 (0.132) |
| Growth t−1 | -0.207 (0.129) | -0.205 (0.169) | -0.259 (0.211) | -0.011 (0.226) | 0.047 (0.243) |
| Growth t−2 | -0.070 (0.077) | -0.076 (0.194) | 0.187 (0.214) | 0.320 (0.218) | 0.521* (0.249) |
| Inflation t−1 | -0.321*** (0.112) | -0.397*** (0.121) | -0.426*** (0.149) | -0.355** (0.147) | -0.288* (0.175) |
| Inflation t−2 | -0.017 (0.077) | -0.031 (0.096) | -0.021 (0.107) | -0.038 (0.102) | -0.038 (0.116) |
| R2 | 0.22 | 0.27 | 0.31 | 0.35 | 0.37 |
| Observations | 2668 | 2668 | 2668 | 2668 | 2667 |
| Regressor\horizon | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| Shock | 5.240*** (0.943) | 6.249*** (1.194) | 7.425*** (1.556) | 7.826*** (1.826) | 8.715*** (1.935) |
| Shock | 0.485 (0.782) | 1.71 (1.159) | 3.275** (1.464) | 5.779*** (81.692) | 6.553*** (1.814) |
| Shock | 1.041 (0.740) | 2.251** (0.095) | 4.761*** (1.348) | 5.627*** (1.611) | 8.411*** (1.776) |
| Debt | 0.058 (0.081) | 0.097 (0.120) | 0.034 (0.156) | 0.060 (0.167) | 0.023 (0.175) |
| Debt | 0.076 (0.075) | 0.020 (0.094) | 0.062 (0.125) | 0.047 (0.127) | 0.025 (0.132) |
| Growth | -0.207 (0.129) | -0.205 (0.169) | -0.259 (0.211) | -0.011 (0.226) | 0.047 (0.243) |
| Growth | -0.070 (0.077) | -0.076 (0.194) | 0.187 (0.214) | 0.320 (0.218) | 0.521* (0.249) |
| Inflation | -0.321*** (0.112) | -0.397*** (0.121) | -0.426*** (0.149) | -0.355** (0.147) | -0.288* (0.175) |
| Inflation | -0.017 (0.077) | -0.031 (0.096) | -0.021 (0.107) | -0.038 (0.102) | -0.038 (0.116) |
| R2 | 0.22 | 0.27 | 0.31 | 0.35 | 0.37 |
| Observations | 2668 | 2668 | 2668 | 2668 | 2667 |
Note(s): Estimation of Equation (1) for debt as dependent variable. Robust standard errors clustered at the country level in parenthesis. *, **, *** denote statistical significance at the 10, 5 and 1 percent levels, respectively. Constant term and fixed effects included but omitted
Source(s): Author's calculations
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