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

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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