Skip to main content

Table 4 Alternative estimates for public education spending per (FTE) student – tackling outliers

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 Extended & GDP per capita Extended & GDP per capita
Specification (4.i) (4.ii) (7.i) (7.ii)
Δlog (spending per student, FTE, at ISCED 0–1) [eq1]     
 Δlog (ULC) 0.95*** 0.88*** 0.96*** 0.88***
(4.61) (3.93) (4.65) (3.94)
 Δlog (real GDP per capita) 0.55*** 0.90*** 0.56*** 0.92***
(2.83) (3.32) (2.87) (3.37)
 Δlog (pupil/teacher ratio) (−1) −0.11 −0.09 −0.02 −0.03
(−0.82) (−0.66) (−0.16) (−0.27)
 Δlog (share of capital expenditure) (−1) 0.05 0.05 0.05 0.05
(1.67) (1.59) (1.74) (1.62)
 Δlog (share of teachers’ wages expenditure) (−1) 0.53*** 0.36* 0.44** 0.31
(2.64) (1.83) (2.25) (1.62)
 Constant 8.16** 2.78 8.03** 2.90
(2.53) (0.75) (2.49) (0.78)
Δlog (spending per student, FTE, at ISCED 2–4) [eq2]     
 Δlog (ULC) 0.47** 0.42* 0.48** 0.43*
(2.15) (1.74) (2.17) (1.74)
 Δlog (real GDP per capita) 0.49** 0.82*** 0.49** 0.83***
(2.38) (2.76) (2.40) (2.78)
 Δlog (pupil/teacher ratio) (−1) −0.36** −0.26** −0.31** −0.23*
(−2.54) (−1.78) (−2.23) (−1.65)
 Δlog (share of capital expenditure) (−1) 0.04 0.01 0.04 0.01
(1.07) (0.35) (1.08) (0.35)
 Δlog (share of teachers’ wages expenditure) (−1) 0.54** 0.44** 0.49** 0.43**
(2.51) (2.08) (2.31) (1.99)
 Constant 7.11** −0.89 7.04** −0.84
(2.08) (−0.22) (2.06) (−0.21)
Δlog (spending per student, FTE, at ISCED 5–6) [eq3]     
 Δlog (ULC) 0.86*** 0.77*** 0.86*** 0.77***
(3.81) (3.15) (3.81) (3.15)
 Δlog (real GDP per capita) 0.45** 0.72** 0.45** 0.72**
(2.12) (2.46) (2.12) (2.46)
 Δlog (share of capital expenditure) (−1) 0.06 0.04 0.06 0.04
(1.60) (1.22) (1.60) (1.22)
 Δlog (share of teachers’ wages expenditure) (−1) 0.53** 0.53** 0.54** 0.53**
(2.42) (2.48) (2.47) (2.48)
 Constant 1.59 −0.45 1.59 −0.45
(0.45) (−0.11) (0.45) (−0.11)
Δlog (general govt. spending per capita) [eq4]     
 Δlog (ULC)    0.69*** 0.53***
   (6.30) (4.67)
 Δlog (real GDP per capita)    0.43*** 0.71***
   (4.25) (5.24)
 Constant    2.92* 3.96**
   (1.70) (2.08)
Observations 206 206 206 206
R 2 [eq1] 0.28 0.31 0.27 0.31
R 2 [eq2] 0.24 0.22 0.24 0.22
R 2 [eq3] 0.18 0.22 0.18 0.22
R 2 [eq4]    0.29 0.37
AIC 4567.29 4564.37 5799.84 5779.91
BIC 4723.70 4730.77 5999.51 5992.89
Country dummies for selected countries Yes - Yes -
Joint Wald-type test for dummies (at 5%) eq2   eq2  
Year dummies - Yes - Yes
Joint Wald-type test for dummies (at 5%)   eq1   eq1
Breusch-Pagan test of independence stat. (p-val.) 22.11 (0.00) 19.49 (0.00) 38.15 (0.00) 30.34 (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. For the joint Wald-type test, the table indicates the equation for which the null was rejected at the 5% level (meaning that dummies were jointly and statistically significant)
  2. Country and year dummies are not shown
  3. Standard errors are adjusted for small sample sizes. t statistics are given in parentheses, * p < 0.10, ** p < 0.05, *** p < 0.01