This document contains the results of three regressions analyzing the relationship between poverty (dependent variable) and income inequality and growth (independent variables) in 8 cross-sections over the period of 2002-2012. The normal regression shows a negative relationship between poverty and growth but the results are not statistically significant. The fixed effects regression finds a positive relationship between poverty and income inequality and negative relationship with growth. The random effects regression finds a negative relationship between poverty and growth but the other coefficients are not statistically significant.

1. Normal Regression
DependentVariable:POVERTY
Method: Panel LeastSquares
Date: 10/20/14 Time:18:26
Sample:2002 2012
Periods included:6
Cross-sections included:8
Total panel (balanced) observations:48
Variable Coefficient Std. Error t-Statistic Prob.
INCOME_INEQUALITY -0.810944 0.604320 -1.341911 0.1864
GROWTH -0.003335 0.001721 -1.937230 0.0590
C 65.86585 17.53023 3.757272 0.0005
R-squared 0.187282 Mean dependentvar 33.79290
Adjusted R-squared 0.151162 S.D. dependentvar 12.08054
S.E. of regression 11.13009 Akaike info criterion 7.717644
Sum squared resid 5574.555 Schwarz criterion 7.834594
Log likelihood -182.2235 Hannan-Quinn criter. 7.761839
F-statistic 5.184895 Durbin-Watson stat 1.124323
Prob(F-statistic) 0.009411
Fixed Effect
DependentVariable:POVERTY
Method: Panel LeastSquares
Date: 10/20/14 Time:18:26
Sample:2002 2012
Periods included:6
Cross-sections included:8
Total panel (balanced) observations:48
Variable Coefficient Std. Error t-Statistic Prob.
INCOME_INEQUALITY 1.353497 0.343255 3.943126 0.0003
GROWTH -0.001332 0.000753 -1.767762 0.0851
C -5.710651 10.18077 -0.560925 0.5781
Effects Specification
Cross-section fixed (dummyvariables)
R-squared 0.886484 Mean dependentvar 33.79290
Adjusted R-squared 0.859599 S.D. dependentvar 12.08054
S.E. of regression 4.526596 Akaike info criterion 6.040869
Sum squared resid 778.6228 Schwarz criterion 6.430703
Log likelihood -134.9809 Hannan-Quinn criter. 6.188188
F-statistic 32.97278 Durbin-Watson stat 1.881175
Prob(F-statistic) 0.000000

2. Random Effect
DependentVariable:POVERTY
Method: Panel EGLS (Cross-section random effects)
Date: 10/20/14 Time:18:27
Sample:2002 2012
Periods included:6
Cross-sections included:8
Total panel (balanced) observations:48
Swamy and Arora estimator ofcomponentvariances
Variable Coefficient Std. Error t-Statistic Prob.
INCOME_INEQUALITY 0.176665 0.297120 0.594591 0.5551
GROWTH -0.001965 0.000734 -2.679417 0.0103
C 32.28042 8.784750 3.674597 0.0006
Effects Specification
S.D. Rho
Cross-section random 2.579440 0.2451
Idiosyncratic random 4.526596 0.7549
Weighted Statistics
R-squared 0.051060 Mean dependentvar 19.68061
Adjusted R-squared 0.008885 S.D. dependentvar 8.057974
S.E. of regression 8.022097 Sum squared resid 2895.932
F-statistic 1.210668 Durbin-Watson stat 1.120413
Prob(F-statistic) 0.307519
Unweighted Statistics
R-squared 0.081349 Mean dependentvar 33.79290
Sum squared resid 6301.170 Durbin-Watson stat 0.847309