Table 8 Model 2 – results of dynamic...

Table 8

Model 2 – results of dynamic panel data modeling with limited number of instrumental variables; one-step difference GMM; dependent variable: d_hvg_g

Group variable: Country Number of instruments = 18 Wald χ²(7) = 46.47***			Number of obs = 324 Number of groups = 27 Obs per group: = 12
Robust	Coef	Std. Err	z	p>\|z\|	(95% conf. Interval)
d_hvg_g_1	−0.1268201	0.0643736	−1.97	0.049**	−0.2529901	−0.0006501
d_taxenvg_1	1.198019	0.6507239	1.84	0.066*	−0.0773763	2.473415
d_taxenp_1	−0.4025534	0.3533117	−1.14	0.255	−1.095032	0.2899248
d_reen_1	0.2842993	0.1403517	2.03	0.043**	0.0092149	0.5593837
d_orfarm	0.1866586	0.1553204	1.20	0.229	−0.1177637	0.491081
d_amagr	−0.1087108	0.0242032	−4.49	0.000***	−0.1561482	−0.0612734
d_homno	−0.2233539	0.0977834	−2.28	0.022**	−0.4150058	−0.031702

Group variable: CountryNumber of instruments = 18Wald χ²(7) = 46.47***			Number of obs = 324Number of groups = 27Obs per group: = 12
Robust	Coef	Std. Err	z	p>\|z\|	(95% conf. Interval)
d_hvg_g_1	−0.1268201	0.0643736	−1.97	0.049**	−0.2529901	−0.0006501
d_taxenvg_1	1.198019	0.6507239	1.84	0.066*	−0.0773763	2.473415
d_taxenp_1	−0.4025534	0.3533117	−1.14	0.255	−1.095032	0.2899248
d_reen_1	0.2842993	0.1403517	2.03	0.043**	0.0092149	0.5593837
d_orfarm	0.1866586	0.1553204	1.20	0.229	−0.1177637	0.491081
d_amagr	−0.1087108	0.0242032	−4.49	0.000***	−0.1561482	−0.0612734
d_homno	−0.2233539	0.0977834	−2.28	0.022**	−0.4150058	−0.031702

Note(s): Prefix “d_” denotes a first difference; suffix “_1” denotes a lagged variable (t−1)

“*” denotes 10% significance level, “**” denotes 5% significance level, “***” denotes 1% significance level

Arellano-Bond test for AR(1) in first differences: z = −3.80 Pr > z = 0.000

Arellano-Bond test for AR(2) in first differences: z = −1.11 Pr > z = 0.269

Sargan test of overid. restrictions: χ²(11) = 13.91 Prob > χ² = 0.238

Hansen test of overid. restrictions: χ²(11) = 13.30 Prob > χ² = 0.274

Difference-in-Hansen tests of exogeneity of instrument subsets

Hansen test excluding group: χ²(5) = 4.07 Prob > χ² = 0.540

Difference (null H = exogenous): χ²(6) = 9.24 Prob > χ² = 0.161

Source(s): Authors' own elaboration