Dependent Variables

Call Bid-Ask Spread

Put Bid-Ask Spread

Volume

(55)

(56)

(57)

Open Interest

(58)

(59)

(60)

(61)

Implied Volatility

Independent Variables

GDP

−2.63e−06

−0.39

(0.0001359)

(0.696)

GDP per capita

0

0

(omitted)

(omitted)

Unemployment (%)

0

0

(omitted)

(omitted)

Log (Population)

−1,518,342***

0

0

(−2,578,012)

(omitted)

(omitted)

Public Debt % Of GDP

0

0

(omitted)

(omitted)

Bank Capital to Assets Ratio (%)

0

0

(omitted)

(omitted)

Inflation (%)

−1.278.584***

1.758.932***

(−3.28)

(3.78)

Economic Freedom

0

−568.020***

(omitted)

(−5.73)

Interest Rates (Gov Bonds) 10 Year

5,638,271

0.04

(2.94e+07)

(0.968)

Freedom from Corruption

214,266.4

0.28

(1.44e+07)

(0.776)

Fiscal Freedom

−2,120,027

−4.59e+07**

−0.38

(1.94e+07)

(1.38e+07)

(0.705)

Business Freedom

748,265.3

0.22

(3,402,481)

(0.829)

Investment Freedom

351,467.5

0.35

(5,055,412)

(0.730)

Income Tax Rate (%)

306,584

6.43e+07**

−0.27

(2.71e+07)

(2.38e+07)

(0.785)

Corporate Tax Rate (%)

−677,486.7

−0.29

(5.52e+07)

(0.772)

Financial Freedom

−191,546.9

0.25

(4.15e+07)

(0.804)

Market Capitalization of Listed Domestic Companies

0.0000144**

0.0000122

−0.16

(7.34e−06)

(0.0000962)

(0.871)

S&P Global Equity Indices (Annual % Change)

272,695.3

0.40

(610,587)

(0.690)

Stocks Traded, Turnover Ratio of Domestic Shares (%)

0.0000221

221,723***

0.33

(0.0001919)

(86,706.14)

(0.743)

Stocks Traded, Total Value

−108,881.7

−0.30

(1,129,226)

(0.766)

1 Period Lag

−0.01347**

1,174,069***

117,976

0.2308868***

0.2960873**

0.3436831***

1.18

(0.2103805)

(0.1063797)

(3,783,212)

(0.2245345)

(0.065737)

(0.0679785)

(0.236)

Constant

5.45e+08***

−1.98e+07**

0

4.40e+08**

2.95e+09**

−2.63e+09*

0

(1.60e+08)

(7,585,351)

(omitted)

(3.05e+08)

(8.88e+08)

(1.12e+09)

(omitted)