Table 5.
Regression Results using Various Econometrics Methods with Percentage of Old-Age Population as a Proxy for Old-Age Populations.
| Variable | (OLS) | (FE) | (1DGMM) | (2DGMM) | (1SGMM) | (2SGMM) |
|---|---|---|---|---|---|---|
| Percentage Old pop | 0.0199*** | 0.0827* | 0.120 | 0.0253 | 0.0612*** | 0.0641*** |
| (0.000) | (0.012) | (0.393) | (0.607) | (0.000) | (0.000) | |
| L. Gov Spending | 0.913*** | 0.714*** | 1.011*** | 1.051*** | 0.791*** | 0.797*** |
| (0.000) | (0.000) | (0.000) | (0.000) | (0.000) | (0.000) | |
| GDP per capita | 0.0819*** | 0.196*** | −0.256 | −0.207** | 0.155* | 0.142*** |
| (0.000) | (0.000) | (0.614) | (0.002) | (0.019) | (0.000) | |
| Trade to GDP | 0.00772+ | 0.00327 | 0.0267 | 0.0199* | 0.0183 | 0.0163** |
| (0.096) | (0.796) | (0.717) | (0.015) | (0.220) | (0.002) | |
| Control of corruption | 0.0111* | 0.0562*** | 0.0247 | 0.0253** | 0.0726** | 0.0795*** |
| (0.021) | (0.000) | (0.376) | (0.004) | (0.002) | (0.000) | |
| Financial Openness | −0.0123 | −0.0171 | −0.0428 | −0.0261 | 0.0351 | 0.0312* |
| (0.126) | (0.337) | (0.432) | (0.488) | (0.202) | (0.017) | |
| Democracy_dummy | 0.00285 | 0.0298* | 0.0273 | 0.0195 | −0.0132 | −0.0204** |
| (0.665) | (0.010) | (0.551) | (0.144) | (0.546) | (0.001) | |
| Constant | −0.192*** | −0.130 | −0.383+ | −0.339*** | ||
| (0.000) | (0.476) | (0.071) | (0.000) | |||
| N. Obs. | 1705 | 1705 | 1428 | 1428 | 1705 | 1705 |
| R-Squared | 0.996 | 0.854 | ||||
| Adjusted R-Squared | 0.996 | 0.843 | ||||
| AR (1) p-value | 0.00409 | 0.00453 | 0.00424 | 0.00800 | ||
| AR (2) p-value | 0.262 | 0.262 | 0.308 | 0.318 | ||
| Hansen p-value | 0.0526 | 0.0526 | 0.0846 | 0.0846 |
Note: This table estimates the relationship between Old-Age Populations, using Percentage of Old-Age Population as a Proxy, and Government Spending at the Aggregate Level. The Total Final Government Consumption per Capita in Logarithmic form is Dependent Variables. The Percentage of Old-Age Population in Logarithmic form (Percentage Old pop) is the main Independent Variable. OLS represents the Ordinary Least Square Method: FE is Panel Data Model with Fixed Effect; 1DGMM and 2DGMM are one- and two-step Difference Generalized Methods of Moment, respectively, and 1SGMM and 2SGMM are one- and two-step System Generalized Methods of Moment, respectively. The p-value of Auto-Correlation 1st and 2nd order, including ' 'Hansen's post-Estimation Tests for Dynamic GMM are presented at the bottom Panel. The p-values are presented in parentheses and+p < 0.10, *p < 0.05, **p < 0.01, ***p < 0.001.
Source: Author's calculation.