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

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Table 7 Fixed effect estimation results of five areas of economic freedom

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

Variable (1) (2) (3) (4) (5)
(r−g) −6.20E − 05
(0.000435)
0.001295***
(0.000337)
0.000874* (0.000475) −0.000311
(0.000606)
0.001607***
(0.000459)
Lag GDP/capita −7.19E − 07***
(1.78E − 07)
−6.60E − 07***
(2.51E − 07)
−6.93E − 07***
(2.49E − 07)
−8.62E − 07***
(2.62E − 07)
−7.92E − 07***
(2.61E − 07)
Govt. spending (as  % of GDP) −0.000504*
(0.000281)
−0.000717**
(0.000321)
−0.00093***
(0.000318)
−0.000785**
(0.000316)
−0.000770**
(0.000318)
Inflation 5.08E − 05
(0.000116)
0.000145
(0.000109)
9.46E − 05
(0.000133)
0.000123
(0.000110)
0.000126
(0.000110)
Population growth rate 0.000660
(0.001667)
0.001019
(0.000909)
0.001093
(0.000913)
0.001196
(0.000909)
0.000999
(0.000913)
Natural resource rent (as  % of GDP) −0.000245
(0.000273)
−5.69E − 05
(0.000257)
−4.27E − 05
(0.000262)
−0.000376
(0.000263)
−3.80E − 05
(0.000259)
Gross savings rate (as  % of GDP) 0.000385***
(0.000128)
0.000375***
(0.000140)
0.000333**
(0.000141)
0.000396***
(0.000139)
0.000342**
(0.000140)
Tax revenue (as  % of GDP) −0.001136***
(0.000250)
−0.00111***
(0.000160)
−0.00103***
(0.000162)
−0.00109***
(0.000159)
−0.001100***
(0.000159)
Trade openness 7.99E − 05**
(3.33E − 05)
7.78E − 05**
(3.53E − 05)
7.91E − 05**
(3.55E − 05)
7.34E − 05**
(3.53E − 05)
6.67E − 05 *
(3.58E − 05)
Unemployment rate 0.001295***
(0.000206)
0.001173***
(0.000212)
0.001209***
(0.000214)
0.001015***
(0.000212)
0.001154***
(0.000210)
EFW1 0.011585***
(0.003712)
    
EFW12 −0.000532**
(0.000279)
    
(r−g) × EFW1 1.37E − 05
(6.87E − 05)
    
EFW2   0.012940***
(0.004017)
   
EFW22   −0.00110***
(0.000373)
   
(r−g) × EFW2   −0.00023***
(6.01E − 05)
   
EFW3    -0.013544**
(0.005299)
  
EFW32    0.000952***
(0.000339)
  
(r−g) × EFW3    −0.000102*
(5.64E − 05)
  
EFW4     0.031972***
(0.005828)
 
EFW42     −0.00224***
(0.000421)
 
(r−g) × EFW4     4.43E − 05
(8.01E − 050)
 
EFW5      0.006393
(0.009240)
EFW52      −0.000210
(0.000667)
(r−g) × EFW5      −0.000236***
(6.80E − 05)
Redundant fixed effects tests (prob) 199.837128
(0.0000)
203.073872
(0.0000)
209.428482
(0.0000)
206.846867
(0.0000)
201.134660
(0.0000)
Hausman test 72.567801
(0.0000)
83.187496
(0.0000)
65.382413
(0.0000)
72.041878
(0.0000)
70.647063
(0.0000)
Adj. R-squared 0.970054 0.969739 0.969494 0.969941 0.969637
F-statistic 481.0456 475.8991 471.2806 478.8391 479.3310
Prob(F-statistic) 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 ***, **, *, respectively, mean significant at 1%, 5%, and 10% level
  2. Source Research calculations