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

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Table 8 2SLS 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) 0.008810*
(0.005210)
0.002270***
(0.000434)
0.005952**
(0.003067)
−0.001228
(0.001123)
−0.000196
(0.001417)
Lag GDP/capita −3.08E − 06**
(1.49E − 06)
−1.07E − 06***
(3.99E − 07)
8.18E − 07
(9.16E − 07)
−4.80E − 07
(5.95E − 07)
−2.73E − 06**
(1.14E − 06)
Govt. spending (as  % of GDP) 0.003548
(0.002429)
−0.000357
(0.000394)
−0.000784
(0.000744)
0.000219
(0.000537)
0.000634
(0.000863)
Inflation −0.000463
(0.000373)
0.000241*
(0.000125)
−0.000784
(0.000744)
0.000660**
(0.000231)
−0.000809
(0.000503)
Population growth rate −0.004410
(0.003564)
0.001555
(0.001052)
0.002987
(.002300)
7.75E − 05
(0.001365)
−0.001901
(0.002342)
Natural resource rent (as  % of GDP) −0.001108
(0.000803)
−8.43E − 05
(0.000286)
0.001029
(0.000846)
−0.001506**
(0.000606)
−0.001616*
(0.000900)
Gross savings rate (as  % of GDP) 0.000749*
(0.000402)
0.000545***
(0.000167)
0.128700***
(0.040032)
0.000703***
(0.000228)
0.001111**
(0.000440)
Tax revenue (as  % of GDP) −0.00205***
(0.000556)
−0.00210***
(0.000256)
−0.003842**
(0.001546)
−0.00153***
(0.000339)
−0.0015***
(0.000460)
Trade openness 0.000106
(9.70E − 05)
0.000124***
(4.31E − 05)
−2.05E − 05
(0.000118)
1.52E − 05
(6.96E − 05)
0.000100
(8.61E − 05)
Unemployment rate 0.002446***
(0.000810)
0.001077***
(0.000261)
0.012603***
(0.003539)
0.000763**
(0.000381)
0.000541
(0.000511)
EFW1 0.295454*
(0.167960)
    
EFW12 −0.018695
(0.011420)
    
(r−g) × EFW1 −0.001254*
(0.000741)
    
EFW2   0.093011***
(0.029822)
   
EFW22   −0.00828***
(0.002879)
   
(r−g) × EFW2   −0.00040***
(7.67E − 05)
   
EFW3    −0.341668**
(0.173638)
  
EFW32    0.019706*
(0.010142)
  
(r−g) × EFW3    −0.000708*
(0.000364)
  
EFW4     0.195123***
(0.067223)
 
EFW42     −0.01211***
(0.004460)
 
(r−g) × EFW4     0.000153
(0.000149)
 
EFW5      −0.56761**
(0.263736)
EFW52      0.040889**
(0.018762)
(r−g) × EFW5      4.34E − 07
(0.000200)
Observations 1360 1360 1358 1359 1360
Number of countries 80 80 80 80 80
Adj. R-squared 0.840632 0.962136 0.848207 0.940148 0.878289
F-statistic 475.1823 481.1154 474.1967 475.2936 478.9523
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