Dependent Variables

Call Bid-Ask Spread

(29)

Put Bid-Ask Spread

(30)

(31)

Volume

Open Interest

(32)

Implied Volatility

(33)

(34)

Independent Variables

Log (GDP)

−9.83e−11

7,377,928**

1.14e+10**

1.53e−13

(2.61e−11)

(3.36)

(0.92)

(7.13e−140)

GDP per capita

−0.0042462

0.0011669

−7524.3

−0.0000109

(0.0016153)

(0.0027849)

(51,259.72)

(5.08e−06)

Unemployment (%)

−0.0000473

−0.0000177

−5,374,268

−0.0184*

(−1,371,091)

(6,440,153)

(9.27e+07)

(−1.90)

Log (Population)

288,594

5,174,138**

1.63e+08*

0.0136387

(−0.0000473)

(−0.0000177)

(−5,374,268)

(−2.33e−08)

Public Debt % Of GDP

0.0812835

−149,493

2,098,343

−0.0026365

(0.2777827)

(0.5513241)

(1.54e+07)

(0.0015976)

Bank Capital to Assets Ratio (%)

1,441,537

−168,478

−3.88e+08

−0.039154***

(7,385,669)

(8,585,465)

(3.14e+08)

(0.0255095)

Inflation (%)

−5,227,663

5,366,343

1.48e+08

−0.009728

(2,499,113)

(3,934,968)

(1.32e+08)

(0.0116139)

Economic Freedom

0.2417237

3,952,484***

3.17e+07*

0.0056449

(0.7376049)

(0.8598988)

(2.95e+07)

(0.0032589)

Interest Rates (Gov Bonds) 10 Year

−2,242,687

−1,758,032

1.99e+08

0.0423153*

(7,791,506)

(1,573,075)

(4.69e+08)

(0.0390141)

Freedom from Corruption

−2357458**

−1,280,415***

−2.40e+07*

−0.0084223

(5,197,108)

(7,280,564)

(1.48e+08)

(0.0155655)

Fiscal Freedom

−1,687,506

2,933,173***

1.71e+08*

0.0299604*

(5,969,377)

(1,184,746)

(2.77e+08)

(0.0323083)

Business Freedom

−0.7738089

−8,226,478**

−7.44e+07*

−0.0107303***

(1,282,749)

(272,878)

(6.25e+07)

(0.0063113)

Investment Freedom

1,111,043

−4,123,394

−2.44e+07

−0.0018179

(1,386,519)

(2,016,895)

(7.47e+07)

(0.0053503)

Income Tax Rate (%)

1,909,797***

2,657,176**

1.62e+08*

0.0362286

(8,425,393)

(1,254,226)

(3.27e+08)

(0.0389402)

Corporate Tax Rate (%)

7,529,284

1,248,394

−2.67e+08

−0.1695433*

(2,273,524)

(300,873)

(9.81e+08)

(0.0677029)

Financial Freedom

6,548,763

1,801,701

−6.12e+09

−0.2027718

(6,361,956)

(7,631,008)

(1.99e+09)

(0.168976)

Market Capitalization of Listed Domestic Companies

1.45e−11

2.00e−11

0.0003289

1.49e−14

(2.14e−11)

(2.14e−11)

(0.0004678)

(2.92e−14)

S&P Global Equity Indices (Annual % Change)

−0.7347998

−0.9809123

−6693247**

0.0000979*

(0.0939463)

(0.1781333)

(3,493,916)

0.0006**

(0.0003421)

Stocks Traded, Turnover Ratio of Domestic Shares (%)

9.63e−11**

4.39e−11***

−0.0013783*

(2.34)

−1.60e−13*

(5.40e−11)

(5.88e−11)

(0.0016434)

(1.99e−13)

Stocks Traded, Total Value

−0.4808714

−0.171***

0.1251975***

7,508,647*

0.0009984*

(0.3056932)

(−5.21)

(0.3387303)

(1.05e+07)

(0.0011633)

Constant

−44,955.63**

2,557,756***

−1941.44

4.49e+11***

0.3100664 ***

9,649,115

(4,598,113)

(878,505)

(5,382,439)

(1.41e+11)

(0.0017345)

(1,135,567)