By adopting an econometric model used in the article of “Cristina Checherita-Westphal, Philipp Rother”, The impact of high government debt on economic growth and its channels: An empirical investigation for the euro area , 2012"​, and using Stata, we investigated the impact of government debt and other important macroeconomic variables on GDP growth through a period of 12 years.

1. University of Piraeus
Department of Economics
An empirical investigation of economic growth and debt
Dimitrios Kiritsis
Donatela Salai
Antzela Ouroutsi
Piraeus, June 2015

2. 12/20/16
Outline
• Motivation
• Graph
• Model
• Data
• Results
• Estimated Model
• Robustness
• Conclusions / References

3. Motivation
050100050100050100
1990 1995 2000 2005 2010
1990 1995 2000 2005 20101990 1995 2000 2005 2010 1990 1995 2000 2005 2010
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden
aveY aveD
YEAR
Graphs by COUNTRY
050100150200
gdpc1
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden

4. Data: Graphs050100150200
INVESTMENT
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden
grY
INVESTMENT
DEBT
DEBT2
SPENDING
NX
gdpc1
grL
0
500
1000
0 500 1000
0
100
200
0 100 200
0
100
200
0 100 200
0
100
200
0 100 200
0
100
200
0 100 200
0
100
200
0 100 200
0
100
200
0 100 200
-5
0
5
10
-5 0 5 10

5. Model
• Solow (1956), Barro(1991), Checherita & Rother(2012)
• grY= ai+ a1(Yt=o/popt=o) + a2(Iit/Yit )+ a3(grL/Yit)+ a4(Debtit/Yit)+a5(Debtit/Yit)2+
a6Zit+ εit
Where,
grY= Growth rate of GDP(constant 2005 US$)
Iit/Yit= Investment (% of GDP)
grL=Growth rate of labor (% of GDP)
Debtit/Yit=Central government debt, total (% of GDP)
pop=Population, total
Zi, i=1,2,
1= Net Exports (% of GDP)
2= General government final consumption expenditure (% of GDP)
• Expectations
a1(-),a2(+),a3(+),a4(?),a5(?),a6.1(+),a6.2(-)

6. Data
• Countries : Austria, Canada, Czech Republic, Denmark,
Hungary, Jordan, Nepal, Philippines, Sweden
• Time span : 1992/1995-2009
• Source : World Bank Indicator (WDI)

7. Results
legend: * p<0.05; ** p<0.01; *** p<0.001
chi2 6.4284401 12.240685
r2 .04197068 .04197068 .04172097 .04172097
F .98258207 .92213949 .9142853 59.628946
N 165 165 165 165 165 165
_cons -15.339304 -15.339304 -55.543446 -55.543446 -15.630745 -15.630745
spending1 -.04413878 -.04413878 -.04616899 -.04616899 -.04715415 -.04715415
nx1 .28741468 .28741468 .51525676* .51525676 .31738452* .31738452
DEBT2 -.07007356 -.07007356 .1672875 .1672875 -.03473157 -.03473157
debt1 .13477337 .13477337 -.16215063 -.16215063 .08004625 .08004625
grL -9.2102274 -9.2102274 -7.0790251 -7.0790251 -9.0514295 -9.0514295
investment1 .17164389 .17164389 .14412825 .14412825 .16441599 .16441599
gdpc1 -.05219032 -.05219032 .21033939 .21033939 -.05389926 -.05389926
Variable OLSdefault OLSrobust FEdefault FErobust REdeafault RErobust

8. Estimated Model: POOLED OLS
• Hausman test between Fixed effects model and Random effects resulted in Random effects model.
After that, by having the xttest we resulted in OLS default model.
• grY= -15.33-0.05gdpc1+0.17investment1-9.2grL+0.13debt1-0.07DEBT2+0.28nx1-0.44spending1+ εit
(0.51) (0.32) (1.18) (1.65) (0.46) (0.25) (1.89) 0.31)
Note: Number in parenthesis are t-values
Diagnostics
Number of obs = 165
F( 7, 157) = 0.98
Prob > F = 0.4459
R-squared = 0.0420
Adj R-squared = -0.0007
Root MSE = 84.294
Free: Multicolinearity, Hetteroskedasticity, Autocorrelation

9. 12/20/16
Robustness
Dummies:
D for net exporting countries VS net importing countries.
Group A= Net exporters: Hungary, Nepal, Jordan, Philippines, Czech Republic
Group B= Net importers: Austria, Canada, Denmark, Sweden
grY= 18.72- 0.12gdpc1+0.05investment1-3.48grL-0.07debt1+0.04DEBT2+0.08nx1-0.08spending1+0.04D+εit
(1.59) (2.01) (0.99) (1.27) (1.64) (0.47) (1.50) ( 1.84) (0.07)
Note:Number in parenthesis are t-values
Diagnostics
Number of obs = 165
F( 8, 150) = 0.74
Prob > F = 0.66
R-squared = 0.0377
Adj R-squared = -0.0136
Root MSE = 36,37
Free: Multicolinearity, Hetteroskedasticity, Autocorrelation

10. 12/20/16
Conclusions
• a7: (Net Exports (% of GDP) positive effect and statistical
significant
Daniel Lederman & William F. Maloney (2003): "Trade
Structure and Growth”, World Bank Policy Research Working
Paper, No. 3025

11. 12/20/16
Appendix
1.Multicolinearity
0.0087 0.0000 0.7706 0.0477 0.3279 0.0019
spending1 -0.1908* -0.3427* 0.0221 0.1508* 0.0717 0.2250* 1.0000
0.5177 0.6236 0.0000 0.1889 0.8798
nx1 -0.0475 0.0360 0.4561* 0.1004 -0.0111 1.0000
0.5871 0.9230 0.9696 0.0000
DEBT2 -0.0399 0.0071 0.0029 0.8574* 1.0000
0.0294 0.0002 0.7210
debt1 -0.1656* -0.2772* 0.0280 1.0000
0.0000 0.1505
grL -0.4360* 0.1085 1.0000
0.0032
investment1 0.2142* 1.0000
gdpc1 1.0000
gdpc1 invest~1 grL debt1 DEBT2 nx1 spendi~1

12. 12/20/16
Graph matrix
INVESTMENT
DEBT
DEBT2
SPENDING
NX
gdpc1
grL
0
100
200
0 100 200
0
100
200
0 100 200
0
100
200
0 100 200
0
100
200
0 100 200
0
100
200
0 100 200
0
100
200
0 100 200
-5
0
5
10
-5 0 5 10

13. 12/20/16
2.Heteroskedasticity
Prob > chi2 = 0.0000
chi2(1) = 318.94
Variables: fitted values of grY
Ho: Constant variance
Breusch-Pagan / Cook-Weisberg test for heteroskedasticity

14. 12/20/16
-50005001000
Residuals
0 50 100 150 200
INVESTMENT
-50005001000
Residuals
0 50 100 150 200
DEBT
-50005001000
Residuals
0 50 100 150 200
DEBT2
-50005001000
Residuals
0 50 100 150 200
SPENDING

15. 12/20/16
-50005001000
Residuals
0 50 100 150 200
NX
-50005001000
Residuals
0 50 100 150 200
gdpc1
-50005001000
Residuals
-5 0 5 10
grL

16. 12/20/16
-50005001000
Residuals
-500 0 500 1000
Residuals, L
3.Autocorrelation
-50005001000
Residuals
1990 1995 2000 2005 2010
YEAR

17. 12/20/16
Histograms
0.1.2.30.1.2.30.1.2.3
0 500 1000 0 500 1000 0 500 1000 0 500 1000
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden Total
Density
kdensity grY
normal grY
Density
grY
Graphs by COUNTRY
0.02.04.060.02.04.060.02.04.06
0 50 100 150 200 0 50 100 150 200 0 50 100 150 200 0 50 100 150 200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden Total
Density
kdensity investment1
normal investment1
Density
INVESTMENT
Graphs by COUNTRY

18. 12/20/16
0.01.02.03.040.01.02.03.040.01.02.03.04
0 50 100 150 200 0 50 100 150 200 0 50 100 150 200 0 50 100 150 200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden Total
Density
kdensity DEBT2
normal DEBT2
Density
DEBT2
Graphs by COUNTRY
0.02.04.060.02.04.060.02.04.06
0 50 100 150 200 0 50 100 150 200 0 50 100 150 200 0 50 100 150 200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden Total
Density
kdensity debt1
normal debt1Density
DEBT
Graphs by COUNTRY

19. 12/20/16
0.050.050.05
0 50 100 150 200 0 50 100 150 200 0 50 100 150 200 0 50 100 150 200
Austria Belgium Canada CzechRepublic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden Total
Density
kdensityspending1
normal spending1
Density
SPENDING
Graphs byCOUNTRY
0.02.04.060.02.04.060.02.04.06
0 50 100 150 200 0 50 100 150 200 0 50 100 150 200 0 50 100 150 200
Austria Belgium Canada CzechRepublic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden Total
Density
kdensitynx1
normal nx1
Density
NX
Graphs byCOUNTRY

20. 12/20/16
0.2.4.6.80.2.4.6.80.2.4.6.8
-5 0 5 10 -5 0 5 10 -5 0 5 10 -5 0 5 10
Austria Belgium Canada CzechRepublic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden Total
Density
kdensitygrL
normalgrL
Density
grL
Graphs byCOUNTRY
0.02.04.06.080.02.04.06.080.02.04.06.08
0 50 100 150 200 0 50 100 150 200 0 50 100 150 200 0 50 100 150 200
Austria Belgium Canada CzechRepublic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden Total
Density
kdensitygdpc1
normalgdpc1
Density
gdpc1
Graphs byCOUNTRY

21. 12/20/16
05001,00005001,00005001,000
Austria Belgium Canada CzechRepublic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden
grY
GraphsbyCOUNTRY
050100150200050100150200050100150200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden
DEBT
Graphs by COUNTRY
Box Plots

22. 12/20/16
050100150200050100150200050100150200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden
INVESTMENT
Graphs by COUNTRY
050100150200050100150200050100150200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden
DEBT2
Graphs by COUNTRY

23. 12/20/16
050100150200050100150200050100150200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden
SPENDING
Graphs by COUNTRY
050100150200050100150200050100150200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden

24. 12/20/16
050100150200050100150200050100150200
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden
NX
Graphs by COUNTRY
-50510-50510-50510
Austria Belgium Canada Czech Republic
Denmark Germany Hungary Jordan
Nepal Philippines Sweden
grL
Graphs by COUNTRY

25. 12/20/16
05001000
grY
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden
050100150200
DEBT
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden
Time Series Plots

26. 12/20/16
050100150200
INVESTMENT
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden
050100150200
DEBT2
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden

27. 12/20/16
050100150200
SPENDING
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden
050100150200
NX
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden

28. 12/20/16
050100150200
gdpc1
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden -50510
grL
1990 1995 2000 2005 2010
YEAR
Austria Belgium
Canada Czech Republic
Denmark Germany
Hungary Jordan
Nepal Philippines
Sweden

29. 12/20/16
Scatter Plots
05001000
grY
0 50 100 150 200
DEBT
05001000
grY
0 50 100 150 200
INVESTMENT

30. 12/20/16
05001000
grY
0 50 100 150 200
DEBT2
05001000
grY
0 50 100 150 200
NX

31. 12/20/16
05001000
grY
0 50 100 150 200
SPENDING
05001000
grY
0 50 100 150 200
gdpc1

32. 12/20/16
05001000
grY
-5 0 5 10
grL

33. 12/20/16
OLS regression
_cons -15.3393 30.31154 -0.51 0.614 -75.21033 44.53173
spending1 -.0441388 .1402229 -0.31 0.753 -.3211056 .2328281
nx1 .2874147 .1522237 1.89 0.061 -.0132559 .5880853
DEBT2 -.0700736 .2819926 -0.25 0.804 -.6270623 .4869151
debt1 .1347734 .2947508 0.46 0.648 -.4474152 .7169619
grL -9.210227 5.576763 -1.65 0.101 -20.22539 1.804934
investment1 .1716439 .145282 1.18 0.239 -.1153156 .4586034
gdpc1 -.0521903 .1614234 -0.32 0.747 -.371032 .2666514
grY Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 1164430.82 164 7100.18792 Root MSE = 84.294
Adj R-squared = -0.0007
Residual 1115558.86 157 7105.47047 R-squared = 0.0420
Model 48871.9553 7 6981.7079 Prob > F = 0.4459
F( 7, 157) = 0.98
Source SS df MS Number of obs = 165

34. 12/20/16
OLS ROBUST REGRESSION
_cons -15.3393 36.83956 -0.42 0.678 -88.10441 57.4258
spending1 -.0441388 .0721213 -0.61 0.541 -.186592 .0983144
nx1 .2874147 .2141141 1.34 0.181 -.1355012 .7103306
DEBT2 -.0700736 .1229083 -0.57 0.569 -.3128408 .1726936
debt1 .1347734 .1985307 0.68 0.498 -.2573624 .5269091
grL -9.210227 6.510922 -1.41 0.159 -22.07053 3.650075
investment1 .1716439 .1327669 1.29 0.198 -.0905959 .4338837
gdpc1 -.0521903 .1028187 -0.51 0.612 -.2552767 .1508961
grY Coef. Std. Err. t P>|t| [95% Conf. Interval]
Robust
Root MSE = 84.294
R-squared = 0.0420
Prob > F = 0.4910
F( 7, 157) = 0.92
Linear regression Number of obs = 165

35. 12/20/16
FIXED EFFECTS REGRESSION
F test that all u_i=0: F(10, 147) = 0.77 Prob > F = 0.6555
rho .10715023 (fraction of variance due to u_i)
sigma_e 84.912681
sigma_u 29.415749
_cons -55.54345 110.2938 -0.50 0.615 -273.5097 162.4229
spending1 -.046169 .321996 -0.14 0.886 -.6825083 .5901703
nx1 .5152568 .2222177 2.32 0.022 .0761027 .9544108
DEBT2 .1672875 .3560571 0.47 0.639 -.5363645 .8709395
debt1 -.1621506 .376068 -0.43 0.667 -.9053487 .5810475
grL -7.079025 6.372888 -1.11 0.268 -19.67334 5.515288
investment1 .1441282 .2174411 0.66 0.508 -.2855862 .5738427
gdpc1 .2103394 1.047617 0.20 0.841 -1.859996 2.280675
grY Coef. Std. Err. t P>|t| [95% Conf. Interval]
corr(u_i, Xb) = -0.6502 Prob > F = 0.4972
F(7,147) = 0.91
overall = 0.0275 max = 17
between = 0.1002 avg = 15.0
R-sq: within = 0.0417 Obs per group: min = 12
Group variable: country1 Number of groups = 11
Fixed-effects (within) regression Number of obs = 165

36. 12/20/16
FIXED EFFECTS ROBUST REGRESSION
rho .10715023 (fraction of variance due to u_i)
sigma_e 84.912681
sigma_u 29.415749
_cons -55.54345 82.9764 -0.67 0.518 -240.4264 129.3395
spending1 -.046169 .1136933 -0.41 0.693 -.2994935 .2071555
nx1 .5152568 .3167473 1.63 0.135 -.1905001 1.221014
DEBT2 .1672875 .2132061 0.78 0.451 -.3077652 .6423402
debt1 -.1621506 .2025012 -0.80 0.442 -.6133513 .2890501
grL -7.079025 5.426396 -1.30 0.221 -19.16979 5.011739
investment1 .1441282 .1232121 1.17 0.269 -.1304054 .4186619
gdpc1 .2103394 .4977539 0.42 0.682 -.8987255 1.319404
grY Coef. Std. Err. t P>|t| [95% Conf. Interval]
Robust
(Std. Err. adjusted for 11 clusters in country1)
corr(u_i, Xb) = -0.6502 Prob > F = 0.0000
F(7,10) = 59.63
overall = 0.0275 max = 17
between = 0.1002 avg = 15.0
R-sq: within = 0.0417 Obs per group: min = 12
Group variable: country1 Number of groups = 11
Fixed-effects (within) regression Number of obs = 165

37. 12/20/16
RANDOM EFFECTS REGRESSION
rho .03090386 (fraction of variance due to u_i)
sigma_e 84.912681
sigma_u 15.163361
_cons -15.63075 34.21572 -0.46 0.648 -82.69232 51.43083
spending1 -.0471542 .1594549 -0.30 0.767 -.3596799 .2653716
nx1 .3173845 .1610536 1.97 0.049 .0017253 .6330437
DEBT2 -.0347316 .2940462 -0.12 0.906 -.6110515 .5415883
debt1 .0800463 .3110469 0.26 0.797 -.5295944 .6896869
grL -9.051429 5.668779 -1.60 0.110 -20.16203 2.059173
investment1 .164416 .1572259 1.05 0.296 -.1437411 .4725731
gdpc1 -.0538993 .1838381 -0.29 0.769 -.4142153 .3064168
grY Coef. Std. Err. z P>|z| [95% Conf. Interval]
corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.4907
Wald chi2(7) = 6.43
overall = 0.0414 max = 17
between = 0.2184 avg = 15.0
R-sq: within = 0.0339 Obs per group: min = 12
Group variable: country1 Number of groups = 11
Random-effects GLS regression Number of obs = 165

38. 12/20/16
RANDOM EFFECTS ROBUST
REGRESSION
rho .03090386 (fraction of variance due to u_i)
sigma_e 84.912681
sigma_u 15.163361
_cons -15.63075 29.46528 -0.53 0.596 -73.38163 42.12014
spending1 -.0471542 .0762171 -0.62 0.536 -.1965368 .1022285
nx1 .3173845 .2169167 1.46 0.143 -.1077644 .7425334
DEBT2 -.0347316 .040545 -0.86 0.392 -.1141984 .0447352
debt1 .0800463 .0630397 1.27 0.204 -.0435093 .2036018
grL -9.051429 6.076613 -1.49 0.136 -20.96137 2.858513
investment1 .164416 .1047209 1.57 0.116 -.0408332 .3696652
gdpc1 -.0538993 .0696405 -0.77 0.439 -.1903922 .0825937
grY Coef. Std. Err. z P>|z| [95% Conf. Interval]
Robust
(Std. Err. adjusted for 11 clusters in country1)
corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.0929
Wald chi2(7) = 12.24
overall = 0.0414 max = 17
between = 0.2184 avg = 15.0
R-sq: within = 0.0339 Obs per group: min = 12
Group variable: country1 Number of groups = 11
Random-effects GLS regression Number of obs = 165

39. 12/20/16
HAUSMAN TEST
Prob>chi2 = 0.9238
= 2.54
chi2(7) = (b-B)'[(V_b-V_B)^(-1)](b-B)
Test: Ho: difference in coefficients not systematic
B = inconsistent under Ha, efficient under Ho; obtained from xtreg
b = consistent under Ho and Ha; obtained from xtreg
spending1 -.046169 -.0471542 .0009852 .279742
nx1 .5152568 .3173845 .1978722 .1531093
DEBT2 .1672875 -.0347316 .2020191 .2007823
debt1 -.1621506 .0800463 -.2421969 .2113693
grL -7.079025 -9.051429 1.972404 2.911811
investment1 .1441282 .164416 -.0202877 .1502021
gdpc1 .2103394 -.0538993 .2642386 1.031361
FEdefault REdeafault Difference S.E.
(b) (B) (b-B) sqrt(diag(V_b-V_B))
Coefficients

40. 12/20/16
XTTEST
Prob > chibar2 = 0.1501
chibar2(01) = 1.07
Test: Var(u) = 0
u 229.9275 15.16336
e 7210.163 84.91268
grY 7100.188 84.26261
Var sd = sqrt(Var)
Estimated results:
grY[country1,t] = Xb + u[country1] + e[country1,t]
Breusch and Pagan Lagrangian multiplier test for random effects

41. 12/20/16
OUTLIERS
4
5
67
89101112
13
14
1516171822232425
2627
28
29
3031
32
33
34
35
36
38
394041424344
45
46474849
5051
5253
54
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
75
76
7778
79808182838485
86
87
88
89
91929394
95
9697
9899100
101
102103
104
106
107
108109110111112113
114
115116
117
118
119
121
122
123
124125
126127
128
129
130
131
132
133
134
135
136137
139140
141142143144
145146147
148149150
151152
153154
157
158
159
160
161
162
163
164
165
166167
168
175
176
177
178179
180181182183
184
185
186187
188
0.05.1.15.2.25
Leverage
0 .2 .4 .6 .8
Normalized residual squared

42. 12/20/16
MODEL ESTIMATED WITH DUMMIES
_cons -14.23622 32.29801 -0.44 0.660 -78.03407 49.56163
D 2.119791 20.92297 0.10 0.919 -39.20908 43.44866
nx1 .2750279 .1956191 1.41 0.162 -.1113761 .6614319
spending1 -.0448741 .1408541 -0.32 0.750 -.3231014 .2333533
DEBT2 -.0805595 .3012248 -0.27 0.789 -.6755651 .5144462
debt1 .142824 .3061754 0.47 0.642 -.4619605 .7476084
grL -9.263999 5.619544 -1.65 0.101 -20.36421 1.836215
investment1 .1677051 .1508384 1.11 0.268 -.1302442 .4656543
gdpc1 -.0540443 .1629653 -0.33 0.741 -.3759476 .267859
grY Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 1164430.82 164 7100.18792 Root MSE = 84.561
Adj R-squared = -0.0071
Residual 1115485.47 156 7150.54786 R-squared = 0.0420
Model 48945.3524 8 6118.16905 Prob > F = 0.5554
F( 8, 156) = 0.86
Source SS df MS Number of obs = 165

43. 12/20/16
MODEL ESTIMATED WITHOUT
OUTLIERS
_cons 18.8192 13.27504 1.42 0.158 -7.411017 45.04943
D .148982 9.069299 0.02 0.987 -17.77109 18.06906
nx1 .0875015 .0819643 1.07 0.287 -.0744521 .2494552
spending1 -.082107 .0580944 -1.41 0.160 -.196896 .0326819
DEBT2 .0573976 .1683864 0.34 0.734 -.275318 .3901132
debt1 -.0846599 .1689968 -0.50 0.617 -.4185816 .2492617
grL -3.430181 2.656401 -1.29 0.199 -8.678978 1.818616
investment1 .0577803 .062812 0.92 0.359 -.0663302 .1818908
gdpc1 -.1222888 .0692928 -1.76 0.080 -.2592049 .0146272
grY Coef. Std. Err. t P>|t| [95% Conf. Interval]
Total 184211.26 158 1165.89405 Root MSE = 34.377
Adj R-squared = -0.0136
Residual 177262.012 150 1181.74675 R-squared = 0.0377
Model 6949.24851 8 868.656064 Prob > F = 0.6604
F( 8, 150) = 0.74
Source SS df MS Number of obs = 159