Table 8: Regression estimates: random effects specifications of bmod2. Dependent variable: income per capita (in natural logarithm).

Independent variables IIII III
WRSE PCSEWRSE PCSEWRSE PCSE

Aid−0.019***−0.019***−0.013−0.013−0.004**−0.004**
(4.11)(4.11)(1.12)(1.11)(2.31)(2.31)
Initial income0.710***0.710***0.969***0.969***0.734***0.734***
(5.23)(5.23)(4.41)(4.41)(4.85)(4.85)
Inflation−0.007−0.0070.006**0.006**−0.001**−0.001**
(1.08)(1.08)(1.72)(1.72)(1.81)(1.81)
Corruption0.148***0.148***0.0290.0290.200***0.200***
(3.39)(3.39)(1.04)(1.04)(2.82)(2.82)
Corruption * aid0.0001*0.0001*0.0030.003−0.06−0.06
(1.67)(1.68)(1.33)(1.33)(1.22)(1.22)
Aid * aid0.0040.004−0.001−0.001−0.005**−0.005**
(1.42)(1.42)(1.13)(1.13)(2.07)(2.07)
Investment0.010.01−0.04***−0.04***0.020.02
(0.79)(0.79)(3.31)(3.31)(1.05)(1.04)
World trade0.002***0.002***−0.003−0.003*0.007*0.007*
  (5.53)(5.53)(1.61)(1.64)(1.67)(1.67)
Broad money supply0.0020.0022.788***2.788***0.001***0.001***
(0.25)(0.25)(4.81)(4.81)(3.39)(3.39)
Trend−0.002−0.002*−0.034***−0.034***−0.034−0.034
(1.41)(1.69)(3.12)(3.12)(1.07)(1.07)
War0.0890.089−0.122***−0.122***
(1.61)(1.61)(2.97)(2.97)
UEMOA−0.003−0.003*−0.167***−0.167***
(1.61)(1.68)(2.57)(2.57)
Corruption_19940.012*0.012
(1.65)(1.62)
c1.159***1.159***
−14.151***

−14.151***
1.048***1.048***
(4.17)(4.17)(5.55)(5.55)(5.41)(5.41)
Number of countries141414141414
Observations406406406406406406
Adjusted 0.680.680.750.750.740.74
F statistics257***257***261***261***241***241***

***Indicates significance at the 1 percent level.
**Indicates significance at the 5 percent level.
*Indicates significance at the 10 percent level.
t statistics are in parenthesis.