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Table 2 Estimated fiscal multipliers, adjusted for unemployment rates, interest rates, trade balance (net exports), and domestic investment

From: Does investment in the health sector promote or inhibit economic growth?

a. Fiscal multiplier for total government spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total government spending 1.61** 1.60** 1.38** 1.10** 0.64**
  (0.12) (0.15) (0.17) (0.10) (0.13)
Unemployment rate −248.28** −258.67** −364.58** −205.14
   (65.84) (86.17) (94.99) (131.78)
Interest rate −320.26** −304.69** −269.42**
    (94.24) (76.57) (54.26)
Net exports (PPP, Real, per capita) 0.61** 1.31**
     (0.16) (0.19)
Total domestic investment (PPP, Real, per capita) 1.12**
      (0.26)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
b. Fiscal multiplier for health spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total health spending 4.32** 3.21** 2.07 2.23* 1.92**
  (0.88) (0.98) (1.21) (0.90) (0.53)
Total government spending minus health spending 1.05** 1.26** 1.25** 0.88** 0.39*
  (0.33) (0.37) (0.39) (0.27) (0.15)
Unemployment rate −205.61** −239.03* −336.54** −173.88
   (57.89) (87.57) (94.16) (123.10)
Interest rate −286.44** −248.57** −203.53**
    (83.05) (58.98) (47.45)
Net exports (PPP, Real, per capita) 0.64** 1.24**
     (0.17) (0.17)
Total domestic investment (PPP, Real, per capita) 1.06**
      (0.25)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
c. Fiscal multiplier for defense spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total defense spending −9.83** −13.17** −12.92** −8.51 −3.62
(3.32) (3.67) (4.33) (4.77) (2.91)
Total government spending minus defense spending 1.66** 1.62** 1.42** 1.20** 0.71**
(0.08) (0.09) (0.10) (0.11) (0.14)
Unemployment rate −286.58** −301.73** −368.95** −221.27
   (66.15) (90.73) (91.27) (124.46)
Interest rate −253.31* −263.02** −251.73**
    (96.90) (84.62) (55.96)
Net exports (PPP, Real, per capita) 0.47* 1.24**
     (0.20) (0.18)
Total domestic investment (PPP, Real, per capita) 1.08**
      (0.25)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
d. Fiscal multiplier for education spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total education spending 8.24** 6.53** 4.98 5.06** 3.16*
  (2.09) (2.10) (2.50) (1.75) (1.11)
Total government spending minus education spending 0.66* 0.88** 0.92** 0.59** 0.33
(0.24) (0.26) (0.27) (0.20) (0.24)
Unemployment rate −188.09** −227.19** −333.20** −168.63
   (58.30) (76.03) (84.09) (117.61)
Interest rate −211.45 −184.21 −186.19**
    (127.38) (97.00) (61.05)
Net exports (PPP, Real, per capita) 0.63** 1.26**
     (0.15) (0.17)
Total domestic investment (PPP, Real, per capita) 1.11**
      (0.22)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
e. Fiscal multiplier for general public services spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total general public services spending 0.62 1.37 2.44* 2.05* 0.81
(0.68) (0.71) (0.89) (0.88) (0.58)
Total government spending minus general public services spending 1.75** 1.63** 1.21** 0.96** 0.62**
(0.09) (0.12) (0.14) (0.14) (0.11)
Unemployment rate −242.48** −279.25** −381.55** −207.43
   (67.58) (88.70) (100.42) (132.83)
Interest rate −396.26** −372.92** −284.09**
    (97.04) (84.44) (59.63)
Net exports (PPP, Real, per capita) 0.60** 1.30**
     (0.16) (0.19)
Total domestic investment (PPP, Real, per capita) 1.12**
      (0.27)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
f. Fiscal multiplier for culture & recreation spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total culture & recreation spending 7.57 6.25 4.52 0.83 3.19
(5.51) (4.70) (3.99) (2.96) (3.25)
Total government spending minus culture & recreation spending 1.34** 1.38** 1.24** 1.11** 0.57**
(0.32) (0.30) (0.26) (0.19) (0.18)
Unemployment rate −243.28** −259.08** −365.32** −194.27
   (65.52) (88.99) (94.63) (129.50)
Interest rate −306.23** −305.79** −258.23**
    (98.71) (77.59) (54.23)
Net exports (PPP, Real, per capita) 0.61** 1.31**
     (0.16) (0.18)
Total domestic investment (PPP, Real, per capita) 1.14**
      (0.26)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
g. Fiscal multiplier for community spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total community spending −2.50** −2.32** −1.57** −0.91 −0.48
(0.79) (0.63) (0.52) (0.63) (0.58)
Total government spending minus community spending 1.68** 1.67** 1.47** 1.19** 0.73**
(0.10) (0.13) (0.15) (0.09) (0.11)
Unemployment rate −231.99** −255.56** −351.38** −198.19
   (58.31) (85.00) (90.87) (129.65)
Interest rate −254.50** −260.82** −248.63**
    (80.86) (69.72) (49.31)
Net exports (PPP, Real, per capita) 0.55** 1.22**
     (0.14) (0.19)
Total domestic investment (PPP, Real, per capita) 1.03**
      (0.28)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
h. Fiscal multiplier for environment spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total environment spending 8.39 1.03 −0.46 3.02 3.54
(5.92) (4.73) (4.01) (4.02) (2.67)
Total government spending minus environment spending 1.50** 1.60** 1.40** 1.07** 0.59**
(0.17) (0.16) (0.18) (0.14) (0.14)
Unemployment rate −251.28** −269.12** −356.05** −193.58
   (67.63) (86.71) (96.24) (128.60)
Interest rate −322.65** −301.83** −261.57**
    (94.54) (78.69) (56.92)
Net exports (PPP, Real, per capita) 0.62** 1.35**
     (0.16) (0.18)
Total domestic investment (PPP, Real, per capita) 1.14**
      (0.26)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
i. Fiscal multiplier for economic affairs spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total economic affairs spending 0.06 −0.06 0.03 −0.55 −0.29
(0.38) (0.45) (0.40) (0.35) (0.28)
Total government spending minus economic affairs spending 1.83** 1.80** 1.58** 1.32** 0.84**
(0.14) (0.17) (0.20) (0.14) (0.19)
Unemployment rate −248.83** −271.11** −388.53** −233.36
   (62.40) (75.94) (84.40) (125.08)
Interest rate −265.45** −237.34** −238.72**
    (91.29) (74.14) (50.65)
Net exports (PPP, Real, per capita) 0.66** 1.27**
     (0.13) (0.18)
Total domestic investment (PPP, Real, per capita) 0.97**
      (0.26)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
j. Fiscal multiplier for social protection spending
  Gross domestic product adjusted for inflation and purchasing-power parity
Covariates (1) (2) (3) (4) (5)
Total social protection spending 2.88** 3.25** 2.72** 2.21** 1.29*
(0.45) (0.49) (0.64) (0.49) (0.53)
Total government spending minus social protection spending 0.83** 0.52 0.57 0.47* 0.36
(0.27) (0.26) (0.31) (0.20) (0.20)
Unemployment rate −289.73** −323.90** −410.46** −254.49
   (61.01) (85.98) (94.19) (142.36)
Interest rate −211.82 −217.75* −229.26**
    (101.48) (80.13) (59.17)
Net exports (PPP, Real, per capita) 0.57** 1.28**
     (0.17) (0.21)
Total domestic investment (PPP, Real, per capita) 0.98**
      (0.31)
Country-years 296 213 213 213 192
Number of countries 25 19 19 19 19
  1. Notes: Robust standard errors in parentheses clustered by country to reflect non-independence of sampling.
  2. ** p<0.01, * p<0.05.