Dependent Variables

Call Bid-Ask Spread

(35)

(36)

Put Bid-Ask Spread

(37)

Volume

(38)

Open Interest

(39)

Implied Volatility

(40)

(41)

Independent Variables

Log (GDP)

3.04e−11

−2.37e−11

0.0000235

0.0001685

1.03e−13

(1.85e−11)

(2.16e−11)

(8.43e−06)

(0.0007229)

(4.34e−14)

GDP per capita

−0.0008962

−0.0014959

5,523,282

5,829,452

−6.54e−06

(0.0020782)

(0.0015178)

(4,729,704)

(23,218.79)

(1.33e−06)

Unemployment (%)

−3.80e−06

−8.84e−07

0.0864748

4,876,369

−2.24e−09

(5,222,666)

(1,603,924)

(25,034.4)

(−9.18e+07)

(−0.0165008)

Log (Population)

4,066,669

4,966,175

2,286,598

1.50e+08

0.0036199***

(−3.80e−06)

(−8.84e−07)

(0.0864748)

(4,876,369)

(−2.24e−09)

Public Debt % Of GDP

−0.7869933

−1,109,088

−80,727.04

8,956,468

−0.0035088

(1,156,745)

(0.6399793)

(202,937.3)

(1.62e+07)

(0.001445)

Bank Capital to Assets Ratio (%)

−9722102

1,473,033***

−551,979***

1.22e+08

−0.0234583

(1,444,585)

(1,206,198)

(384,295)

(2.16e+08)

(0.0132522)

Inflation (%)

−0.3084574

2,845,764

−1,635,805

3.79e+07

0.0004861

(3,139,013)

(5,654,011)

(1,312,211)

(1.43e+08)

(0.006932)

Economic Freedom

−1561838

0.6572755

−1,082,200**

−2.31e+07

0.0008498

(1,899,719)

(2,157,497)

(563,528.6)

(4.53e+07)

(0.0031195)

Interest Rates (Gov Bonds) 10 Year

−4,490,122**

−4111495**

−519,891.5

−3.63e+07

0.0145965

(1,242,055)

(1,062,798)

(1,343,819)

(2.60e+08)

(0.0095867)

Freedom from Corruption

−2,639,384

−0.853028**

−1,060,994

2.93e+07

−0.000271

(5,533,023)

(2,822,251)

(773,117.1)

(2.90e+07)

(0.0065121)

Fiscal Freedom

−5,052,756

−0.3909706

1,094,639

1.03e+08

−0.0089019

(1,102,719)

(7,730,906)

(3,196,039)

(1.71e+08)

(0.0080985)

Business Freedom

−1,249,726

−1,389,615

1,539,349***

2.99e+07

−0.0077038**

(3,928,377)

(2,165,426)

(770,675)

(5.26e+07)

(0.0050599)

Investment Freedom

−2,063,552

−0.745197

−488,897**

−3.10e+07

−0.0070047

(2,976,293)

(2,717,522)

(915,335.9)

(3.69e+07)

(0.0050848)

Income Tax Rate (%)

−6,182,334

−2,546,851

3,448,664

1.66e+08

−0.0103391

(8,333,543)

(9,941,428)

(4,310,762)

(2.80e+08)

(0.0067985)

Corporate Tax Rate (%)

−9,746,373

−3,599,357

2,039,977

1.74e+08

0.00131

(8,680,848)

(112,352)

(2,215,022)

(1.56e+08)

(0.0107205)

Financial Freedom

−2,429,196

−4,778,613

4,158,051

3.32e+07

−0.0062963

(1,186,915)

(7,365,695)

(3,084,875)

(1.63e+08)

(0.0148224)

Market Capitalization of Listed Domestic Companies

5.74e−11

1.36e−11

1.42e−06

0.0000534

−8.55e−14

(5.30e−11)

(2.71e−11)

(0.0000116)

(0.0010772)

(6.54e−14)

S&P Global Equity Indices (Annual % Change)

−0.7461294

−0.6370572

172,094.7

2,014,576

0.0002363

0.0006007**

(0.9133799)

(0.5709311)

(265,815.4)

(8,646,852)

(0.000664)

(0.0002567)

Stocks Traded, Turnover Ratio of Domestic Shares (%)

−6.92e−11**

−1.45e−11

−0.0000349

0.0004817

2.68e−13

(6.65e−11)

(8.38e−11)

(0.0000191)

(0.0014138)

(8.91e−14)

Stocks Traded, Total Value

1.56e−11***

0.42912**

0.0003415

267,631.8

−913,594.4

−0.0012293

(1.29e−11)

(0.5041878)

(0.574734)

(153,251.3)

(9,417,680)

(0.0006659)

Constant

2,557,756***

1,782,733***

1,106,168**

−5.97e+08***

−2.38e+10

3739635*

0.3100664 ***

(8.78505)

(1,397,387)

(1,382,201)

(2.73e+08)

(2.46e+10)

(0.8271702)

(0.0017345)