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Table 1 Estimates for public education spending per (FTE) student

From: An empirical inquiry into the determinants of public education spending in Europe

SUR estimates for the model specifications: Baseline Baseline & GDP per capita Extended Extended & GDP per capita Extended & country dummies Extended & output gap
Specification (1) (2) (3) (4) (5) (6)
Δlog (spending per student, FTE, at ISCED 0–1) [eq1]       
 Δlog (ULC) 1.18*** 1.11*** 1.00*** 1.03*** 0.93*** 0.66***
(7.00) (6.96) (4.94) (5.22) (4.30) (3.01)
 Δlog (real GDP per capita)   0.81***   0.64***   
  (5.46)   (3.49)   
 Ouput gap       0.85***
      (3.43)
 Δlog (pupil/teacher ratio) (−1)    −0.16 −0.12 −0.11 −0.12
   (−1.26) (−0.92) (−0.79) (−0.95)
 Δlog (share of capital expenditure) (−1)    0.07** 0.05 0.06* 0.06*
   (2.15) (1. 35) (1.89) (1.90)
 Δlog (share of teachers’ wages expenditure) (−1)    0.45** 0.46** 0.55*** 0.37*
   (2.24) (2.36) (2.64) (1.92)
 Constant 3.48*** 2.31*** 4.27*** 3.26*** 4.17 4.89***
(4.70) (3.17) (5.28) (3.89) (1.46) (6.05)
Δlog (spending per student, FTE, at ISCED 2–4) [eq2]       
 Δlog (ULC) 0.69*** 0.64*** 0.61*** 0.64*** 0.43* 0.31
(3.93) (3.74) (2.79) (2.97) (1.88) (1.28)
 Δlog (real GDP per capita)   0.61***   0.60***   
  (3.81)   (3.02)   
 Ouput gap       0.76***
      (2.83)
 Δlog (pupil/teacher ratio) (−1)    −0.33** −0.29** −0.35** −0.30**
   (−2.36) (−2.07) (−2.40) (−2.11)
 Δlog (share of capital expenditure) (−1)    0.05 0.03 0.04 0.04
   (1.28) (0.72) (1.12) (1.05)
 Δlog (share of teachers’ wages expenditure) (−1)    0.47** 0.48** 0.58*** 0.41*
   (2.20) (2.29) (2.65) (1.92)
 Constant 3.71*** 2.84*** 3.98*** 3.03*** 3.42 4.54***
(4.82) (3.63) (4.56) (3.32) (1.14) (5.15)
Δlog (spending per student, FTE, at ISCED 5–6) [eq3]       
 Δlog (ULC) 1.11*** 1.06*** 0.80*** 0.82*** 0.83*** 0.70***
(5.90) (5.75) (3.75) (3.88) (3.50) (2.90)
 Δlog (real GDP per capita)   0.66***   0.49**   
  (3.87)   (2.48)   
 Ouput gap       0.27
      (1.00)
 Δlog (share of capital expenditure) (−1)    0.07** 0.06* 0.07* 0.07**
   (2.12) (1.65) (1.78) (2.02)
 Δlog (share of teachers’ wages expenditure) (−1)    0.46** 0.46** 0.55** 0.43**
   (2.16) (2.22) (2.37) (2.04)
 Constant 0.56 −0.39 1.70** 0.90 −0.29 1.89**
(0.68) (−0.46) (2.00) (1.00) (−0.09) (2.17)
Observations 247 247 206 206 206 206
R 2 [eq1] 0.17 0.26 0.18 0.22 0.28 0.22
R 2 [eq2] 0.06 0.11 0.10 0.14 0.25 0.14
R 2 [eq3] 0.13 0.18 0.12 0.15 0.18 0.13
AIC 5474.48 5440.62 4570.36 4556.55 4635.34 4560.56
BIC 5495.53 5472.20 4616.95 4613.12 4911.55 4617.14
Breusch-Pagan test of independence stat. (p-val.) 53.77 (0.00) 34.67 (0.00) 29.95 (0.00) 21.27 (0.00) 27.04 (0.00) 24.46 (0.00)
  1. Note: The R 2 is a summary measure of the overall in-sample predictive power of the model; it is simply computed as 1-residual sum of squares/total sum of squared residuals. The null of the Breusch-Pagan tests is that the residuals across the estimated equations in the model are independent
  2. Country dummies are not shown in specification (5)
  3. Standard errors are adjusted for small sample sizes. t statistics are given in parentheses, * p < 0.10, ** p < 0.05, *** p < 0.01