Variables

Equation (1) GDP

Equation (2) Education

Equation (3) Life Expectancy

Constant

24.73

80.07

24.46***

Composite Decentralization

2.69

−46.58*

−2.20

Com Dec*Dum 7^th NFC

9.61

46.23*

5.65**

Institutional Democracy

−0.14

0.21

−0.07***

GDP

-

4.44

−0.19

Labor

3.46

-

-

Capital

−3.0

-

-

Trade

11.93

-

-

Employment Rate

-

−0.93*

-

Education Expenditures

-

−0.23

-

Health Expenditures

-

-

0.40*

Number of Physicians

-

-

3.03*

R Squared

−2.69

0.636

0.978

No. of Observations

37

37

37

J-STAT, Probability for GMM

0.009

0.007

0.008