Table 4 Difference generalized method of moments (GMM) estimation results

Specification A: with year effects only

 Consumption (t − 1)

0.4226***

(0.0971)

− 0.1097***

(0.0221)

− 0.1287***

(0.0356)

Consumption (t)

− 0.4171***

(0.0157)

 Gini (t − 1)

− 1.7569***

(0.2277)

0.1411*

(0.0784)

0.2846**

(0.1125)

Gini (t)

1.0689***

(0.0494)

Wald χ²-test (Chi²(12))

379.57***

103.39***

No. of instruments

67

67

Arellano–Bond test (Order 2)

0.1642

0.7957

Sargan test (54)

0.9536

0.8414

R-squared

0.61

0.89

Specification B: with year effects and controls

 Consumption (t − 1)

0.4818***

(0.1187)

− 0.1048***

(0.0260)

− 0.1229***

(0.0409)

Consumption (t)

− 0.4349***

(0.0188)

 Gini (t − 1)

− 1.7196***

(0.2335)

0.1326

(0.0839)

0.2815**

(0.1058)

Gini (t)

1.0610***

(0.0438)

 Education (t − 1)

− 0.4117

(0.2881)

0.0140

(0.0846)

0.1221

(0.1285)

Education (t)

0.1576***

(0.0370)

 Urban (t − 1)

− 0.1266

(0.1230)

− 0.0226

(0.0487)

0.1223*

(0.0681)

Urban (t)

0.1637***

(0.0201)

 Tertiary sector (t − 1)

− 0.3273

(0.2193)

− 0.0302

(0.0784)

− 0.1577

(0.0886)*

Tertiary sector (t)

0.0034

(0.0419)

 Aged (t − 1)

− 1.1168

(0.7447)

0.0603

(0.2920)

0.3138

(0.2742)

Aged (t)

− 0.0022

(0.1382)

 Intercept

5.2651***

(0.8470)

1.2681***

(0.1898)

1.0952***

(0.3002)

Intercept

3.1240***

(0.1331)

Wald χ²-test (Chi²(16))

431.21***

144.99***

No. of instruments

71

71

Arellano–Bond test (Order 2)

0.1753

0.8226

Sargan test (54)

0.7747

0.8315

R-squared

0.63

0.91