RBA Annual Conference – 2007 Finance and Welfare States in Globalising Markets

Table 6: Within-country Relationship between Openness, Interest Margin or Mortgage Loan-to-valuation Ratios, and Public Social Expenditure – OECD Sample

	(1) Pub.Soc.Exp.	(2) Pub.Soc.Exp.	(3) Pub.Soc.Exp.	(4) Pub.Soc.Exp.	(5) Pub.Soc.Exp.	(6) Pub.Soc.Exp.	(7) Pub.Soc.Exp.
Openness	−0.1117	−0.3449	−0.3259	−0.2031	−0.4764	−0.3261	0.2417
	−2.17	−4.87	−4.57	−4.11	−4.99	−4.61	2.39
Population		0.0083	0.0086	0.0069	0.0056	0.0086	0.0061
		4.23	4.46	4.13	2.48	4.46	3.12
GDPpc		0.0074	0.0060	−0.0121	−0.0100	0.0061	0.0065
		2.60	2.14	−4.60	−3.98	2.22	2.39
Int. Margin				−4.2092	−36.4688
				−3.61	−3.57
Openness*Int. Margin					7.8368
					3.14
LTV						−0.0001	0.0286
						−0.05	7.54
Openness*LTV							−0.0069
							−7.50
No	314	314	300	199	199	300	300
R2	0.8960	0.9077	0.9108	0.9610	0.9632	0.9108	0.9193
Notes: All regressions include country dummies. Robust t-statistics are reported below the coefficients. The sample includes all available observations for the 1986–2001 period.