RBA Annual Conference – 2007 Finance and Welfare States in Globalising Markets

Table 3: Cross-country Relationship between Openness, Intermediation Margins, and Public Social Expenditure – OECD Sample
(1)
Pub.Soc.Exp.
(2)
Pub.Soc.Exp.
(3)
Pub.Soc.Exp.
(4))
Pub.Soc.Exp.
(5)
Pub.Soc.Exp.(a)
(6)
Pub.Soc.Exp.
(7)
Pub.Soc.Exp.
Openness 0.3794 0.1523 0.1504 −0.0509 0.2105 0.1282 1.0754
4.41 1.54 1.42 −0.32 0.74 1.02 0.64
Population   −0.0031 −0.0029 −0.0024 −0.0080 −0.0033 −0.0034
  −2.88 −2.31 −1.84 −1.63 −4.27 −4.28
GDPpc   0.0370 0.0338 0.0370 0.1367 0.0441 0.0410
  3.11 2.10 2.28 1.59 5.49 5.06
Int. Margin     −1.2738 −39.9544 39.4884    
    −0.47 −2.10 1.16    
Openness*Int. Margin       9.9738      
      2.03      
LTV           0.0034 0.0470
          1.19 0.64
Openness*LTV             −0.0109
            −0.58
No 27 27 27 27 27 21 21
R2 0.1992 0.6049 0.6074 0.6251   0.7606 0.7645
Notes: Observations are averages over periods between 1985 and 2003 where data are available for each country; before computing the average, occasionally missing data are interpolated (the results are virtually identical when only available data are averaged). All regressions include a constant term. Robust t-statistics are reported below the coefficients. Sample: OECD countries included in the OECD Social Expenditure Database.
(a) Int. Margin is instrumented with CredInfo.