Table 12: Dependent variable: growth rate of per capita GDP. Regressors: volatility of GDP growth, consumption growth, investment growth, government consumption growth, and control variables. Sample: OECD countries (21 countries). Horizon: 1978–2007. Annual observations. All regressions include year dummies. All regressions are population weighted.

Static models weighted estimations—restricted sample
Estimation FE FE FE FE-IV 2sls FE -IV 2sls FE-IV 2sls

GDP volatility 0.319*** 0.513** 0.224 0.859***
(2.99) (2.48) (1.55) (3.15)
Consumption volatility −1.038*** −1.09***−1.165*** −1.25***
(−7.43) (−7.78) (−6.53) (−7.02)
Investment volatility 0.139*** 0.017 0.089** −0.107
(4.68) (0.29) (2.27) (−1.44)
Government consumption volatility 0.003 −0.020 −0.052 −0.106
(0.03) (−0.19) (−0.36) (−0.73)
Education 0.004 0.007** 0.007** −0.002 0.002 0.002
(1.33) (2.11) (2.22) (−0.41) (0.48) (0.31)
Population growth 0.623* 0.626* 0.620* 2.36*** 2.079*** 2.059***
(1.85) (1.92) (1.91) (5.00) (4.60) (4.62)
Initial GDP −0.039*** −0.023**−0.0452***−0.029**−0.024**
(−4.00) (−2.45) (−3.56) (−2.38) (−1.99)
Investment share of GDP 0.085*** 0.080*** −0.097***−0.091***−0.089***
(8.44) (8.56) (−4.91) (−4.83) (−4.80)
Observations 630 630 630 567 567 567
Instruments no no no yes yes yes
Hansen statistic ( value) 0.339 0.541 0.560
Kleibergen-Paap Wald statistic 170.679 171.291 175.060

Note: -statistics in parenthesis, robust SEs. *Significance at 10%, **significance at 5%, and ***significance at 1%.