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Regarding to the significance of livestock and the ownership of durable goods variables it can be seen that under this estimation technique the importance of per capita specifications has gained more importance.
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Column 1 indicates that the death toll in floods has no significant effect on GDP per capita growth, possibly because this specification does not control for other potentially significant variables that may create omitted variable bias in the estimation.
Note that one useful property of the log-linear specification is that per capita energy equations like (1) can be equivalently expressed in terms of energy intensity specifications.
In keeping with the Kuznets curve literature we include a cubic per capita income term in our estimated specifications [9].
It is noteworthy that the coefficients of the interaction term between trade openness and relative income per capita for all pollutants and for all specifications are statistically positive.
In all cases, the dependent variable is the share of corruption on GDP and all specifications include real GDP per capita as a control variable since it is expected that, regardless of other factors, higher levels of income will lead to lower levels of corruption.24 Additionally, all specifications include price of coca to determine the effect of the coca market on the dependent variable.
After testing quadratic and logarithmic specifications, both education and per capita household expenditure favoured a logarithmic transformation.
One simple way to capture non-linear Engel curves is to add powers of per capita income to a simple log-linear specification.
In specification (4), we have also added GDP per capita in the country of origin and the average relative income level of the first generation to the specifications.
One of the potential problems with this specification is simultaneity bias if gdp per capita both determines maternal and infant outcomes and is affected by them.
For comparability with these studies, I run the same specifications of Table 5 using log GDP per capita instead of the levels.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com