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Table 3 Estimates for public education spending per (FTE) student with policy commitment

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

SUR estimates for the model specifications: where X below refers to: Extended & GDP per capita Full specification - own lag - Full specification - FE - Full specification - EU27 -
Specification (7) (8) (9) (10)
Δlog (spending per student, FTE, at ISCED 0–1) [eq1]     
 Δlog (ULC) 1.04*** 1.02*** 1.01*** 1.04***
(5.29) (5.27) (4.70) (5.22)
 Δlog (real GDP per capita) 0.65*** 0.57*** 0.42** 0.62***
(3.57) (3.16) (2.03) (3.36)
 Δlog (pupil/teacher ratio) (−1) −0.03 −0.05 0.01 −0.02
(−0.22) (−0.44) (0.05) (−0.18)
 Δlog (share of capital expenditure) (−1) 0.05 0.06* 0.05* 0.05
(1.57) (1.83) (1.66) (1.52)
 Δlog (share of teachers’ wages expenditure) (−1) 0.37** 0.40** 0.46** 0.37*
(2.00) (2.15) (2.27) (1.93)
 [log(ESL) – X] (−1)   −0.02 0.09* −0.02
  (−0.29) (1.73) (−0.76)
 Constant 3.29*** 3.07*** −15.93 3.12***
(3.73) (3.75) (−1.35) (3.62)
Δlog (spending per student, FTE, at ISCED 2–4) [eq2]     
 Δlog (ULC) 0.65*** 0.65*** 0.48** 0.63***
(3.01) (2.97) (2.08) (2.91)
 Δlog (real GDP per capita) 0.61*** 0.60*** 0.51** 0.63***
(3.06) (2.93) (2.26) (3.12)
 Δlog (pupil/teacher ratio) (−1) −0.24* −0.26* −0.29** −0.24*
(−1.73) (−1.86) (−2.03) (−1.73)
 Δlog (share of capital expenditure) (−1) 0.03 0.03 0.03 0.03
(0.72) (0.84) (0.75) (0.72)
 Δlog (share of teachers’ wages expenditure) (−1) 0.44** 0.42** 0.53** 0.43*
(2.09) (1.97) (2.38) (2.03)
 [log(ESL) – X] (−1)   0.05 −0.04 0.03
  (0.65) (0.77) (0.86)
 Constant 3.05*** 3.04*** 12.56 3.20***
(3.34) (3.28) (0.98) (3.41)
Δlog (spending per student, FTE, at ISCED 5–6) [eq3]     
 Δlog (ULC) 0.82*** 0.77*** 0.77*** 0.75***
(3.88) (3.69) (3.37) (3.57)
 Δlog (real GDP per capita) 0.49** 0.48** 0.54** 0.49**
(2.48) (2.45) (2.40) (2.50)
 Δlog (share of capital expenditure) (−1) 0.06* 0.06* 0.05 0.06*
(1.65) (1.83) (1.52) (1.71)
 Δlog (share of teachers’ wages expenditure) (−1) 0.47** 0.48** 0.53** 0.45**
(2.23) (2.35) (2.38) (2.19)
 [log(ESL) – X] (−1)   −0.01 −0.11* 0.01
  (−0.01) (−1.93) (0.42)
 Constant 0.90 0.96 23.31 0.97
(1.00) (1.09) (1.81) (1.07)
Δlog (general spending per capita) [eq4]     
 Δlog (ULC) 0.70*** 0.69*** 0.69*** 0.69***
(6.96) (6.83) (6.86) (6.86)
 Δlog (real GDP per capita) 0.47*** 0.46*** 0.46*** 0.46***
(5.05) (4.85) (4.95) (4.95)
 Constant 2.31*** 2.25*** 2.27*** 2.27***
(5.36) (5.21) (5.27) (5.27)
Observations 206 200 203 203
R 2 [eq1] 0.22 0.23 0.31 0.22
R 2 [eq2] 0.14 0.14 0.26 0.14
R 2 [eq3] 0.15 0.15 0.23 0.14
R 2 [eq4] 0.27 0.26 0.26 0.26
AIC 5774.34 5591.05 5755.20 5693.97
BIC 5840.90 5666.91 6060.01 5770.17
Country dummies No No Yes No
Breusch-Pagan test of independence stat. (p-val.) 38.23 (0.00) 32.98 (0.00) 36.23 (0.00) 37.70 (0.00)
  1. Note: The R2 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. Country dummies not shown for specification (9)
  3. Standard errors are adjusted for small sample sizes. t statistics are given in parentheses, * p < 0.10, ** p < 0.05, *** p < 0.01