Explanatory Variables

Dependent Variable (Tax Pressure)

Border

Real GDP per capita

3.436** (1.559)

Agricultural Added Value (% of GDP)

−0.0738* (0.041)

Commercial opening

−0.0479** (0.022)

Money supply (M2 as a % of GDP)

0.0069 (0.029)

Constant

19.66*** (1.477)

Inefficiency

Sigma square (δ²)

2.121*** (0.325)

Gamma (γ)

0.111 (0.619)

Mu (μ)

4.449*** (1.630)

Eta (η)

0.0334*** (0.006)

Observations

216

Number of countries

8

Log likelihood

−471.66

Wald chi2(4)

12.05 (0.017)