# **Table 7** : **Policies and Social Welfare Growth**

||**Panel**|**A: SWF is Bo**|**ttom 40 Pe**|**rcent**|**Panel B: S**|**WF is Atkin**|**son Index (T**|**heta=3)**|**Pa**|**nel C: SWF**|**is Sen Index**||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||**Posterior**||||**Posterior**||||**Posterior**||||
||**Inclusion**|**Social**|||**Inclusion**|**Social**|||**Inclusion**|**Social**|||
||**Probability**|**Welfare**|**Growth**|**Equality**|**Probability**|**Welfare**|**Growth**|**Equality**|**Probability**|**Welfare**|**Growth**|**Equality**|
|Initial income level|1.000|-2.835|-3.055|0.219|1.000|-2.832|-3.015|0.184|1.000|-2.900|-3.081|0.181|
|||(100)|(100)|(0)||(98)|(100)|(0)||(100)|(100)|(1)|
|Initial equalitylevel|1.000|-1.011|0.078|-1.089|1.000|-2.042|-0.005|-2.037|1.000|-0.496|0.118|-0.615|
|||(94)|(4)|(100)||(100)|(0)|(100)||(14)|(8)|(100)|
|Financial depth(M2 % GDP)|0.003|-0.001|-0.002|0.001|0.004|0.000|-0.002|0.002|0.002|-0.001|-0.001|0.000|
|||(0)|(2)|(11)||(0)|(2)|(18)||(0)|(2)|(20)|
|Inflation rate|1.000|-1.980|-1.692|-0.288|1.000|-2.242|-1.705|-0.537|1.000|-1.841|-1.694|-0.147|
|||(100)|(100)|(12)||(99)|(100)|(20)||(100)|(100)|(7)|
|Budget Balance|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|
|||(23)|(44)|(0)||(19)|(41)|(0)||(31)|(47)|(0)|
|Trade Openness|0.004|0.001|0.002|-0.001|0.004|0.001|0.002|-0.001|0.008|0.003|0.003|-0.001|
|||(21)|(26)|(0)||(13)|(26)|(0)||(25)|(26)|(0)|
|Populationgrowth|0.575|-0.508|-0.394|-0.114|0.762|-0.904|-0.519|-0.385|0.563|-0.452|-0.380|-0.071|
|||(51)|(10)|(48)||(95)|(14)|(88)||(24)|(8)|(66)|
|Life expectancy|0.039|0.006|0.016|-0.010|0.037|0.000|0.015|-0.014|0.048|0.015|0.020|-0.005|
|||(1)|(11)|(2)||(1)|(12)|(1)||(6)|(11)|(1)|
|Revolutionsperpop.|0.470|-0.288|-0.276|-0.012|0.308|-0.226|-0.191|-0.036|0.579|-0.351|-0.331|-0.020|
|||(44)|(54)|(0)||(39)|(57)|(0)||(54)|(53)|(0)|
|Civil Liberties/Democracy|0.031|-0.008|-0.010|0.003|0.027|-0.001|-0.008|0.008|0.035|-0.010|-0.012|0.002|
|||(0)|(0)|(0)||(0)|(0)|(0)||(0)|(0)|(0)|
|Internal/external conflict(dummy|0.034|0.002|-0.002|0.005|0.038|0.007|-0.001|0.009|0.033|0.000|-0.002|0.003|
|||(1)|(0)|(0)||(1)|(0)|(0)||(0)|(0)|(0)|
|Fin. openness(Chinn-Ito)|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.000|
|||(13)|(9)|(0)||(24)|(10)|(0)||(12)|(9)|(0)|
|Primaryschool enrollment rate|0.003|0.000|0.001|-0.001|0.004|-0.002|0.001|-0.003|0.008|0.002|0.003|-0.001|
|||(3)|(2)|(68)||(33)|(1)|(97)||(0)|(2)|(50)|
|Education Gini|0.001|0.000|0.000|0.000|0.000|0.000|0.000|0.000|0.001|0.000|0.000|0.000|
|||(17)|(34)|(0)||(14)|(35)|(0)||(25)|(31)|(0)|
|Agriculture(% GDP)|0.997|-1.969|-2.265|0.296|0.969|-1.701|-2.197|0.496|0.999|-2.090|-2.260|0.171|
|||(88)|(100)|(0)||(51)|(100)|(0)||(100)|(100)|(0)|
|Notes: This table summarizes selected<br>first column reports the posterior inclus<br>weighted estimated slope coefficients f<br>probability-weighted slopes for the regr<br>the text, these two slope coefficients su<br>right-hand-side variable. The number in<br>and of the same sign as theposteriorpr|BMA resu<br>ion proba<br>or the gro<br>essions w<br>m to the<br>parenth<br>obability-|lts. The<br>bility for<br>wth rate<br>here gro<br>slope coe<br>eses indic<br>weighted|three pan<br>the indic<br>of social<br>wth in av<br>fficient r<br>ate the f<br>slope.|els corresp<br>ated explan<br>welfare (Eq<br>erage incom<br>eported in t<br>raction of m|ond to specifi<br>atory variable<br>uation (9)). T<br>es, and grow<br>he second co<br>odels in whic|cations u<br>. The se<br>he third a<br>th in the<br>lumn, an<br>h the est|sing the<br>cond colu<br>nd fourt<br>relevant<br>d they ar<br>imated sl|three indic<br>mn within<br>h columns<br>equality m<br>e multiplied<br>ope coeffic|ated social w<br>each panel r<br>within each p<br>easure, are t<br>by the stan<br>ient is statist|elfare fun<br>eports th<br>anel rep<br>he depen<br>dard devi<br>ically sign|ctions.<br>e posteri<br>ort the co<br>dent vari<br>ation of t<br>ificantly|Within each panel, the<br>or probability-<br>rresponding posterior<br>able. As discussed in<br>he corresponding<br>different from zero|

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