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Table 5 Estimation results of top 10% income share

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

Variable

(1)

EFW only

(2)

EFW only [IV]

(3)

EFW with (r − g)

(4)

EFW with (r − g) [IV]

(5)

EFW with

(r − g) × EFW

(6)

EFW with

(r − g) × EFW [IV]

EFW

0.013737

(0.030120)

0.399004**

(0.182726)

0.006852

(0.029882)

0.353396*

(0.182090)

0.011399

(0.029729)

0.327382*

(0.176825)

EFW2

−3.69E − 05

(0.002140)

−0.028272**

(0.013159)

0.000454

(0.002123)

−0.024912*

(0.013119)

0.000195

(0.002111)

−0.022946*

(0.012732)

(r − g)

  

−0.000535

(0.002134)

−0.000427

(0.001150)

0.003297***

(0.001181)

0.004277***

(0.001318)

(r − g) × EFW

    

−0.000542***

(0.000166)

−0.000668***

(0.000184)

Lag GDP/capita

1.19E − 06***

(3.09E − 07)

1.08E − 06***

(3.81E − 07)

1.38E − 06***

(3.10E − 07)

1.26E − 06***

(3.82E − 07)

1.43E − 06***

(3.08E − 07)

1.38E − 06***

3.72E − 07

Govt. spending (as  % of GDP)

−0.000526

(0.000624)

−0.002712**

(0.001103)

2.91E − 05

(0.000633)

−0.002040*

(0.001133)

0.000103

(0.000629)

−0.001786

(0.001097)

Inflation

0.0009***

(0.000216)

0.00141***

(0.000413)

0.00083***

(0.000214)

0.001318***

(0.000411)

0.000927***

(0.000215)

0.001384***

(0.000408)

Population growth rate

8.91E − 05

(0.001663)

−0.003308

(0.001939)

0.000336

(0.001648)

−0.002915

(0.001900)

0.000207

(0.001639)

−0.002964

(0.001864)

Natural resource rent (as  % of GDP)

0.0014***

(0.000414)

0.001128**

(0.000496)

0.00119***

(0.000414)

0.000972**

(0.000482)

0.001538***

(0.000425)

0.001424***

(0.000473)

Gross savings rate (as  % of GDP)

0.0008***

(0.000247)

0.000370

(0.000297)

0.00082***

(0.000245)

0.000383

(0.000290)

0.000841***

(0.000243)

0.000411

(0.000284)

Tax revenue (as  % of GDP)

−0.0011***

(0.000219)

−0.00107***

(0.000379)

−0.0011***

(0.000217)

−0.001097*** (0.000370)

−0.001142***

(0.000216)

−0.001137***

(0.000363)

Trade openness

0.0001***

(5.15E − 05)

0.00017***

(6.34E − 05)

0.000113**

(5.15E − 05)

0.000152**

(6.26E − 05)

0.000100*

5.13E − 05

0.000134**

(6.13E − 05)

Unemployment rate

0.0009***

(0.000297)

0.000545

(0.000347)

0.00119***

(0.000301)

0.000799**

(0.000349)

0.001258***

(0.000300)

0.000910***

(0.000342)

Redundant fixed effects tests (prob)

191.149234 (0.0000)

 

192.287047 (0.0000)

 

182.896032 (0.0000)

 

Hausman test

76.370610 (0.0000)

 

83.877975 (0.0000)

 

95.063515 (0.0000)

 

Observations

833

799

833

799

833

799

Number of countries

49

47

49

47

49

47

Adj. R-squared

0.964721

0.959210

0.965393

0.961163

0.965821

0.962650

F-statistic

386.6131

392.0626

387.8205

392.4591

386.4177

391.3175

Prob(F-statistic)

0.000000

0.000000

0.000000

0.000000

0.000000

0.000000

  1. Dependent variable is the top 10% income share. All regressions report panel fixed effects. Standard errors are reported in parentheses and ***, **, *, respectively, means significant at 1%, 5%, and 10% level
  2. Source Research calculations
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