0081 00065 t statistics 043 149 174 213 217 221 Average Polity IV Democracy

0081 00065 t statistics 043 149 174 213 217 221

This preview shows page 25 - 28 out of 44 pages.

0.0081 0.0065 t-statistics -0.43 -1.49 -1.74 -2.13 -2.17 -2.21 Average Polity IV Democracy, 1960-2002 0.0016 0.0048 Standard errors 0.0006 0.0017 t-statistics 2.83 2.80 Average Freedom House Political Liberties, 1972- 2002 0.0045 0.0126 Standard errors 0.0011 0.0050 t-statistics 4.01 2.52 Average Economic Freedom, 1970- 2002 0.0102 0.0225 Standard errors 0.0018 0.0085 t-statistics 5.69 2.63 Constant 0.0153 0.0552 -0.0136 0.0855 0.1918 0.0007 t-statistics 1.08 2.95 -1.16 2.42 2.48 0.05 Observations 109 115 100 91 93 85 R-squared 0.1134 0.1739 0.2917 First stage regression on excluded instruments – F statistic and R- squared 12.76, .429 13.77, .442 6.77, .300 Instruments: Distance from equator, British legal origin, French legal origin, socialist legal origin, German legal origin One complication for separating the effects of initial poverty from bad government in evaluating this hypothesis is that there might be interaction effects such that the payoff to better government may depend on income, or vice versa (not to mention other possible non-linearities). To
Image of page 25