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Swiss Journal of Economics and Statistics

Table 6 Validity of the instruments (2SLS First stage F-stat)

From: How does depreciations management affect subsequent fiscal performance? The case of the Swiss cantons

Variables

Misestimation

Referendum

Initiative

Rules

Instrument

Misestimation (D1)

Referendum(− 2)

Initiative(− 2)

Rules(− 2)

F-stat

215.41

13.49

22.82

458.47

p value

0.000

0.000

0.000

0.000

  1. (− 2) denotes the second lag value of the variable whereas (D1) refers to the first difference of the variable. F-stat higher than 16.85 reveals a valid instrument
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