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The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

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Table 4 Estimation results for high-, middle-, and low-income countries

From: Comparative analysis of the effects of institutional factors and Piketty’s Hypothesis on inequality: evidence from a panel of countries

  High-income Middle-income Low-income
Variable (1) EFW with (r − g) × EFW (2) EFW with (r − g) × EFW [IV] (3) EFW with (r − g) × EFW (4) EFW with (r − g) × EFW [IV] (5) EFW with (r − g) × EFW (6) EFW with (r − g) × EFW [IV]
EFW 0.012224
(0.002944) ***
−0.027931
(0.010880)**
0.019469
(0.002737)***
0.052680
(0.009976)***
0.001709
(0.006614)
0.013558
(0.021279)
(r−g) 0.003302
(0.001877)*
0.002655
(0.002135)
0.000704
(0.001120)
0.001298
(0.001263)
0.000546
(0.004302)
0.013752
(0.006953)*
(r−g) × EFW −0.000477
(0.000256)*
−0.000390
(0.000292)
−8.06E − 05
0.000170
−0.000160
(0.000192)
−6.13E − 05
(0.000608)
−0.001959
(0.000983)**
Lag GDP/capita 4.18E − 07
(2.41E − 07)*
7.22E − 07
(2.67E − 07)***
−7.29E − 06
(9.18E − 07)***
−1.16E − 05
(1.59E − 06)***
1.14E − 05
(1.74E − 05)
2.95E − 06
(1.75E − 05)
Govt. spending (as  % of GDP) −0.000525
(0.000582)
−0.002334
(0.000746)***
−0.001207
(-0.001207)**
−0.000634
(0.000572)
0.001210
(0.000803)
0.001557
(0.001285)
Inflation 0.000506
(0.000298)*
−0.000126
(0.000365)
0.000294
(0.000147)**
0.000990
(0.000258)***
0.000470
(0.000355)
−0.000498
(0.000564)
Population growth rate 0.000792
(0.001525)
−0.000372
(0.001698)
0.000108
(0.001176)
−0.000533
(0.001326)
0.004484
(0.007610)
−0.045721
(0.009437)***
Natural resource rent (as  % of GDP) −0.000932
(0.000530)*
−0.000685
(0.000563)
−0.000742
(0.000356)**
−0.000906
(0.000400)**
0.000952
(0.000609)
0.000420
(0.001036)
Gross savings rate (as  % of GDP) −0.000367
(0.000245)
−0.000644
(0.000275)**
0.000454
(0.000191)**
0.000429
(0.000213)**
0.001166
(0.000476)**
0.002799
(0.000925)**
Tax revenue (as  % of GDP) −0.000691
(0.000174)***
−0.001190
(0.000229)***
−0.001305
(0.000361)***
−0.001418
(0.000404)***
−0.000904
(0.001114)
0.001325
(0.002308)
Trade openness −1.42E − 05
(4.36E − 05)
5.28E − 05
(4.94E − 05)
0.000126
(6.61E − 05)*
1.87E − 05
(7.99E − 05)
−0.000221
(0.000176)
0.000779
(0.000250)***
Unemployment rate 0.001466
(0.000252)***
0.000566
(0.000376)
0.001321
(0.000430)***
0.000833
(0.000500)*
−0.000569
(0.001606)
0.002975
(0.001273)**
Redundant fixed effects tests (prob) 125.551393
(0.0000)
  211.849998
(0.0000)
  31.495902
(0.0000)
 
Hausman test
(Prob)
51.324853
(0.0000)
  24.774029
(0.0159)
  
Observations 646 629 646 646 102 102
Number of countries 38 37 38 38 6 6
Adj. R-squared 0.949992 0.944860 0.945949 0.932593 0.912050 0.738918
F-statistic 251.0613 269.7732 231.3719 225.0688 62.61075 27.29917
Prob (F-statistic) 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
  1. Dependent variable is Gini of net income. All regressions report panel fixed effects. Standard errors are in parentheses and ***, **, * indicates significant at 1%, 5%, and 10% level
  2. Source Research calculations