RBA Annual Conference – 2006 How Will Ageing Affect the Structure of Financial Markets?

Table 7: Estimates of Demographic Effects on Financial Structure – Ratio Variables
All countries All countries with financial
development variables
LOAN/EQUITY LOAN/SECURITY DEBT/EQUITY LOAN/EQUITY LOAN/SECURITY DEBT/EQUITY
GDPPC −0.0033
(2.3)		 −0.0008
(0.3)		 −0.4
(1.6)		   −0.0069
(3.7)		 0.011
(0.4)		 −0.47
(1.4)
INFLATION 0.0054
(4.7)		 0.086
(5.3)		 0.25
(1.4)		   0.0043
(3.9)		 0.062
(4.8)		 0.13
(0.7)
URBAN −0.0052
(5.0)		 −0.031
(1.5)		 −0.21
(0.9)		   −0.0041
(3.5)		 −0.052
(2.1)		 −0.46
(1.6)
OPEN −0.0018
(3.4)		 −0.028
(4.5)		 −0.38
(5.4)		   −0.0029
(5.1)		 −0.033
(5.2)		 −0.42
(5.6)
20–39 −0.0046
(2.1)		 0.018
(0.4)		 1.0
(2.2)		   −0.0067
(2.8)		 0.012
(0.3)		 1.23
(2.7)
40–64 −0.016
(6.0)		 0.032
(0.7)		 1.6
(3.3)		   −0.017
(5.6)		 −0.028
(0.6)		 1.61
(2.7)
65+ −0.011
(2.6)		 −0.055
(1.0)		 −0.61
(1.0)		   −0.0077
(1.7)		 −0.056
(1.0)		 −0.45
(0.7)
PFAGDP (−1)     −0.172
(4.5)		 −0.27
(0.6)		 2.25
(0.4)
BANKGDP (−1)     −0.178
(7.7)		 0.99
(3.5)		 5.6
(1.7)
R2 0.71 0.61 0.41   0.73 0.63 0.41
Countries 67 36 36   63 35 35
Observations 1,219 395 395   1,059 365 365
Notes: See Table 4; also, LOAN/EQUITY – ratio of loans to stock market capitalisation; LOAN/SECURITY – ratio of loans to bonds plus equities; DEBT/EQUITY – ratio of loans plus bonds to equity; all ratios expressed in per cent