31 Table 7 Private saving: Additional explanatory variables, full sample, system estimator (Dependent variable: Gross private saving/GPDI)

|Additional variables|e<br>Curr. Acct.<br>Deficit|s<br>Govt.<br>Investment|,<br>Income<br>Uncertainty|Oil Crisis<br>Dummy|e<br>Income<br>Perm.-Temp.|ee<br>TOT Perm.-<br>Temp.|eae<br>Ex-post<br>Realint.|
|---|---|---|---|---|---|---|---|
|Lagged private saving rate|0.435|0.587|0.829|0.614|<br>0.615|0.702|<br>0.577|
||(40.873)|(14.233)|(13.733)|(12.069)|(12.818)|(17.109)|(9.362)|
|Real per-capita GPDI*|0.049<br>|0.025<br>|0.033<br>|0.042<br>|-|0.037<br>|0.038<br>|
||(3.535)<br>|(1.240)<br>|(1.847)<br>|(2.469)<br>||(2.647)<br>|(1.640)<br>|
|Real growth rate ofper-capita GPDI°|0.288<br>|0.317<br>|0.417<br>|0.462<br>|0.384<br>|0.381<br>|0.431<br>|
||(6.117)|(5.25)|(10.652)|(6.516)|(5.494)|(9.085)|(4.679)|
|Real interest rate* °|-0.143|~0.242|-0.203|-0.223|-0.194|-0.072|-0.386|
||(-3.774)|(-8.412}|(-6.178)|(-5.328)|(-7.235)|(-2.379)|(-4.243)|
|M2/GNP|0,028<br>|-0.031<br>|-0.045<br>|-0.011<br>|0.002<br>|0.041<br>|-0.052<br>|
||(1.192)|(-1.144)|(-1.649)|(-0.363}|(0.084)|(2.000)|{-1.481)|
|Terms oftrade®|0.041<br>|0.093<br>|0.068<br>|0.069<br>|0.084<br>—<br>|-|0.047<br>|
||(3.946)|(7.374)|(8.747)|(5.960)|(8.469)||(3.605)|
|Urbanizationratio|-0.205|-0.271|-0.363|-0.347|-0.283|-0.274|-0.308|
||(-2.848)|(-3.077)|(-4.269}|(-3.989)|(-3.846)|(-3.774)|(-3.553)|
|Old dependency ratio|-0.95|-1.009|-0.552|-0.593|-0.225|-0.593|-0.653|
||{(-5.841)|(-4.151)|(-4.486)|(-3.637)|(-1.401)|(-3.878)|(-2.510)|
|Youngdependencyratio|-0.231|-0.454|-0.397|-0.294|-0.350|-0.204|-0.289|
||(-5.024)|(-7.084)|(-7.426)|(-4.963)|(-6.424)|(-4.924)|(-3.746)|
|Government saving/GPDI|-0.306<br>|-0.277<br>|-0.251<br>|-0.286<br>|-0.156<br>|-0.174<br>|-0.297<br>|
||(-7.073)|(-5.034)|(-5.244)|(-5.423)|(-3.265)|(-4.307}|(-4.528)|
|Privatecreditflow/GPDI|-0.075|-0.290|-0.246|-0.266|-0.376|-0.378|-0.222|
||(-1.364)|{-3.726)|(-5.896)|(-3.871)|(-5.805)|(-6.932)|(-2.409)|
|Inflation rate* °|0.107<br>|0.067<br>|0.137<br>|0.175<br>|0.106<br>|0.164<br>|-0.104<br>|
||(2.506)|(1.525)|(2.893)|(2.742)|(2.556)|(4.420)|(-0.924)|
|Current account deficit/GPDI|-0.329|-|-|-|-|-|-|
||(-9.443)|||||||
|Government investment/GPDI|-|-0.251<br>(-6.802)|-|-|-|-|-|
|Future income uncertainty proxy?|-|-|0.007<br>|-|-|-|-|
||||(0.049)|||||
|Oii crisis dummy®|-|-|-|-0.011<br>(-3.770)|-|-|-|
|Permanent (log) real per capita GPDI|-|-|-|-|0.005<br>|-|-|
||||||(0.277)|||
|Temporary (log) real per capita GPDI|-|-|-|-|0.160<br>|-|-|
||||||(1.404)|||
|Permanent (log) terms oftrade|-|-|-|-|-|0.058|-|
|||||||(5.298)||
|Temporary (log) terms oftrade|-|-|-|-|-|0.177<br>(9.974)|-|
|Waid testofjointsignificance (p-value)|~~<br>0.000|0.000|0.000|0000|£0000|£0000|©6000|
|Sargan test (p-value)|0.268|0.475|0.547|0.450|0.918|0.372|0.505|
|Test for 1st-order serial correlation (p-value)|0.001|0.001|0.000|0.000|0.000|0.000|0.002|
|Test for 2nd-order serial correlation (p-vaiue)|0.378|0.159|0.328|0.127|0.287|0.196|0.229|
|Test for 3d-orderserial correlation (p-vaiue)}|0.147|0.129|0.256|0.176|0.125|0.188|0.120|
|‘Number<br>ofobservations(Numberof<br>countries)|872(69)|673(62)|+=—«777(60)+|—872(69)|+~+=779(62)|~—«858(66)|~—«872(69)|
|<br><br>;||||||||
|Notes:<br>T-statistics (in brackets) computed wit<br>* Expressed in logs (log of[1+x] for the real i<br>> Measured by the firstdifference ofthe fog.<br>© Both the real interest rate and the inflation r<br>*Squareofone-periodaheadforecasterror.|h heteroskedast<br>nterest rate and <br>ate are bounde|icity-consistent <br> the inflation rate<br>:<br>d between —50 p|standard errors<br>).<br>ercent and 50 p|.<br>ercent.||||
|<br>* In the regression ofColumn 4, we considere<br>coefficients were found to be negative, only th<br>1974Dummyvariable.|d 4 time dummi<br>ose for the year|es correspondi<br>s 1973 and 197|ng to the oil cris<br>4 were significa|is years 1973<br>nt. The coeff|, 1974, 1979 and <br>icient reported in t|1980. Although<br>he table corres|all four<br>ponds to the|

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