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.