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Table 2 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: Extended & GDP per capita Extended & GDP per capita
-adding general gov’t expenditure-
Specification (4) (7)
Δlog (spending per student, FTE, at ISCED 0–1) [eq1]   
 Δlog (ULC) 1.03*** 1.04***
(5.22) (5.29)
 Δlog (real GDP per capita) 0.64*** 0.65***
(3.49) (3.57)
 Δlog (pupil/teacher ratio) (−1) −0.12 −0.03
(−0.92) (−0.22)
 Δlog (share of capital expenditure) (−1) 0.05 0.05
(1. 35) (1.57)
 Δlog (share of teachers’ wages expenditure) (−1) 0.46** 0.37**
(2.36) (2.00)
 Constant 3.26*** 3.29***
(3.89) (3.73)
Δlog (spending per student, FTE, at ISCED 2–4) [eq2]   
 Δlog (ULC) 0.64*** 0.65***
(2.97) (3.01)
 Δlog (real GDP per capita) 0.60*** 0.61***
(3.02) (3.06)
 Δlog (pupil/teacher ratio) (−1) −0.29** −0.24*
(−2.07) (−1.73)
 Δlog (share of capital expenditure) (−1) 0.03 0.03
(0.72) (0.72)
 Δlog (share of teachers’ wages expenditure) (−1) 0.48** 0.44**
(2.29) (2.09)
 Constant 3.03*** 3.05***
(3.32) (3.34)
Δlog (spending per student, FTE, at ISCED 5–6) [eq3]   
 Δlog (ULC) 0.82*** 0.82***
(3.88) (3.88)
 Δlog (real GDP per capita) 0.49** 0.49**
(2.48) (2.48)
 Δlog (share of capital expenditure) (−1) 0.06* 0.06*
(1.65) (1.65)
 Δlog (share of teachers’ wages expenditure) (−1) 0.46** 0.47**
(2.22) (2.23)
 Constant 0.90 0.90
(1.00) (1.00)
Δlog (general govt. spending per capita) [eq4]   
 Δlog (ULC)   0.70***
  (6.96)
 Δlog (real GDP per capita)   0.47***
  (5.05)
 Constant   2.31***
  (5.36)
Observations 206 206
R 2 [eq1] 0.22 0.22
R 2 [eq2] 0.14 0.14
R 2 [eq3] 0.15 0.15
R 2 [eq4]   0.27
AIC 4556.55 5774.34
BIC 4613.12 5840.90
Breusch-Pagan test of independence stat. (p-val.) 21.27 (0.00) 38.23 (0.00)
  1. Note: The R 2 is just 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. Standard errors are adjusted for small sample sizes. t statistics are given in parentheses, * p < 0.10, ** p < 0.05, *** p < 0.01