# **Table 4a. Determinants of gasoline prices: basic model with variables on system stability: random effects.**

||GLS||||2SLS||||
|---|---|---|---|---|---|---|---|---|
||4.1|4.2|4.3|4.4|4.5|4.6|4.7|4.8|
|Crude oil pricet|1.205<sup>~~***~~</sup><br>(0.079)|1.206<sup>~~***~~</sup><br>(0.078)|1.251<sup>~~***~~</sup><br>(0.079)|1.259<sup>~~***~~</sup><br>(0.077)|0.959<sup>~~***~~</sup><br>(0.096)|0.962<sup>~~***~~</sup><br>(0.092)|1.033<sup>~~***~~</sup><br>(0.089)|1.038<sup>~~***~~</sup><br>(0.090)|
|GDP purchasing power dollars per<br>inhabitanti,t-1|<br>0.00038<sup>~~*~~</sup><br>(0.00021)|0.00031<br>(0.00020)|0.00056<sup>~~**~~</sup><br>(0.00023)|0.00051<sup>~~**~~</sup><br>(0.00023)|0.0021<sup>~~***~~</sup><br>(0.00053)|0.0020<sup>~~***~~</sup><br>(0.00055)|0.0021<sup>~~***~~</sup><br>(0.00054)|0.0021<sup>~~***~~</sup><br>(0.00056)|
|Net oil surplusi,t-1|-0.261<sup>~~**~~</sup><br>(0.106)|-0.234<sup>~~**~~</sup><br>(0.106)|-0.308<sup>~~***~~</sup><br>(0.117)|-0.317<sup>~~***~~</sup><br>(0.120)|-0.324<sup>~~***~~</sup><br>(0.125)|-3.028<sup>~~**~~</sup><br>(0.124)|-0.324<sup>~~***~~</sup><br>(0.125)|-0.387<sup>~~***~~</sup><br>(0.132)|
|Land in km<sup>~~2~~</sup><br>i,t|-0.016<sup>~~**~~</sup><br>(0.008)|-0.019<sup>~~**~~</sup><br>(0.008)|-0.013<sup>~~*~~</sup><br>(0.008)|-0.014<br>(0.008)|0.020<br>(0.017)|0.019<br>(0.017)|0.019<br>(0.017)|0.023<br>(0.018)|
|Opennessi,t|-0.088<sup>~~**~~</sup><br>(0.038)|-0.081<sup>~~**~~</sup><br>(0.037)|-0.107<sup>~~***~~</sup><br>(0.039)|-0.109<sup>~~***~~</sup><br>(0.040)|-0.099<sup>~~***~~</sup><br>(0.038)|-0.094<sup>~~**~~</sup><br>(0.037)|-0.122<sup>~~***~~</sup><br>(0.037)|-0.124<sup>~~***~~</sup><br>(0.039)|
|Road gas consumption per million<br>inhabitantsi,t-1|-0.091<sup>~~***~~</sup><br>(0.012)|-0.089<sup>~~***~~</sup><br>(0.012)|-0.084<sup>~~***~~</sup><br>(0.013)|-0.083<sup>~~***~~</sup><br>(0.013)|-0.239<sup>~~***~~</sup><br>(0.054)|-0.240<sup>~~***~~</sup><br>(0.053)|-0.213<sup>~~***~~</sup><br>(0.052)|-0.225<sup>~~***~~</sup><br>(0.057)|
|Public health % GDPi,t-1|4.738<sup>~~***~~</sup><br>(1.209)|4.276<sup>~~***~~</sup><br>(1.185)|6.642<sup>~~***~~</sup><br>(1.168)|6.659<sup>~~***~~</sup><br>(1.199)|3.413<sup>~~***~~</sup><br>(1.270)|3.036<sup>~~***~~</sup><br>(1.255)|5.862<sup>~~***~~</sup><br>(1.104)|5.919<sup>~~***~~</sup><br>(1.140)|
|Control of corruptioni,t|0.326<sup>~~***~~</sup><br>(0.070)|0.297<sup>~~***~~</sup><br>(0.071)|0.383<sup>~~***~~</sup><br>(0.070)|0.387<sup>~~***~~</sup><br>(0.070)|0.470<sup>~~***~~</sup><br>(0.104)|0.457<sup>~~***~~</sup><br>(0.105)|0.516<sup>~~***~~</sup><br>(0.107)|0.541<sup>~~***~~</sup><br>(0.113)|
|Years country has had democratic or non-<br>democratic systemi,t|0.537<sup>***</sup><br>(0.097)||||0.648<sup>***</sup><br>(0.134)||||
|<br>Years<br>country<br>has<br>had<br>democratic<br>systemi,t||0.653<sup>~~***~~</sup><br>(0.100)||||0.729<sup>~~***~~</sup><br>(0.135)|||
|Years country has had non-democratic<br>systemi,t||-0.019<br>(0.116)||||0.053<br>(0.156)|||
|<br>Years of executive in officei,t|-0.475<sup>***</sup><br>(0.126)||||-0.574<sup>***</sup><br>(0.153)||||
|Years<br>of<br>executive<br>in<br>office<br>in<br>democracyi,t|||-0.070<br>(0.160)||||-0.216<br>(0.209)||
|Years of executive in office in<br>non-democracyi,t|||-0.198<br>(0.127)||||-0.204<br>(0.150)||
|Regime change from non-democracy to<br>democracyi,t||||-4.389<br>(3.496)||||-3.659<br>(7.164)|
|<br>Regime change from democracy to non-<br>democracyi,t||||-1.890<br>(3.942)||||-2.738<br>(5.513)|
|<br>Constant|Yes|Yes|Yes|Yes|Yes|Yes|Yes|Yes|
|R<sup>~~2~~</sup>within|0.593|0.595|0.588|0.590|0.570|0.570|0.570|0.571|
|R<sup>~~2~~</sup>overall|0.609|0.614|0.588|0.578|0.566|0.569|0.566|0.532|
|Time dummies|Yes|Yes|Yes|Yes|Yes|Yes|Yes|Yes|
|Observations|1,074|1,074|1,074|1,076|957|957|957|958|

Notes: * = significant at 10 %; ** = significant at 5 %; *** = significant at 1 %; robust standard errors in parentheses 23