Financial Innovation

Table 3 Parameter Stability Test Results

From: Income inequality and financial crises: evidence from the bootstrap rolling window

		INE equation		CRE equation
		Statistics	p-value	Statistics	p-value
Australia	Sup-LR	3.555	0.068	2.879	0.057
	Exp-LR	0.621	0.203	1.047	0.005
	Mean-LR	1.075	0.260	1.937	0.005
	L_C	0.528	0.034	0.829	< 0.01
Canada	Sup-LR	1.543	0.698	8.572	0.000
	Exp-LR	0.434	0.605	1.190	0.015
	Mean-LR	0.832	0.609	1.586	0.087
	L_C	0.565	0.027	0.687	< 0.01
Denmark	Sup-LR	3.591	0.010	3.309	0.031
	Exp-LR	0.850	0.042	1.114	0.006
	Mean-LR	1.486	0.070	2.202	0.005
	L_C	0.925	< 0.01	1.153	< 0.01
Finland	Sup-LR	2.845	0.285	4.255	0.097
	Exp-LR	0.781	0.194	1.149	0.070
	Mean-LR	1.467	0.162	2.095	0.057
	L_C	0.275	0.175	1.306	< 0.01
France	Sup-LR	3.955	0.011	1.778	0.015
	Exp-LR	1.509	0.010	0.785	0.013
	Mean-LR	3.604	0.041	3.530	0.024
	L_C	1.462	< 0.01	1.277	< 0.01
UK	Sup-LR	1.966	0.539	3.123	0.085
	Exp-LR	0.496	0.519	0.888	0.067
	Mean-LR	0.945	0.510	1.610	0.078
	L_C	1.041	< 0.01	0.913	< 0.01
Japan	Sup-LR	3.120	0.052	5.873	0.002
	Exp-LR	0.572	0.297	0.838	0.058
	Mean-LR	0.910	0.520	1.355	0.121
	L_C	0.589	0.023	0.723	< 0.01
Norway	Sup-LR	3.698	0.082	3.328	0.060
	Exp-LR	0.992	0.041	0.876	0.061
	Mean-LR	1.730	0.043	1.690	0.053
	L_C	0.729	< 0.01	0.983	< 0.01
Sweden	Sup-LR	3.194	0.086	3.346	0.085
	Exp-LR	0.750	0.140	0.914	0.061
	Mean-LR	1.388	0.141	1.734	0.053
	L_C	0.692	< 0.01	0.994	< 0.01
US	Sup-LR	3.426	0.016	7.464	0.000
	Exp-LR	0.920	0.023	1.446	0.000
	Mean-LR	1.768	0.022	1.396	0.105
	L_C	0.877	< 0.01	0.719	< 0.01

Note: The parameter stability test for all parameters are based on VAR (3) jointly estimates

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