Wurtz 29
Appendix B: Variable List
Explanatory variable:
Economic stabilization program (stabilize_1): Dummy variable, which takes on a value
of 1 if the country signed a lending agreement with the IMF in the previous year and a 0
otherwise. (+) (source: IMF web page www.imf.org)
Portfolio Variables:
Inflation (inflation_1): Change in the CPI in the previous year. (+) (source: IMF
International Financial Statistics, EconStats.com
Investment (cgdp_ci): investment component of real GDP (+) (source: Penn World
Tables, 6.1)
Current savings (csave): percentage share of current savings to real GDP (+) (source:
PWT 6.1)
Transaction variables:
Trade openness (openc): This variable measures a country’s openness to trade by adding
exports and imports and dividing by GDP. (+) (source: PWT 6.1)
Exports (exports): The volume of a countries exports, measured in billions of U.S.
dollars. (+) (source: PWT 6.1)
Population (ln_pop): Natural log of population. (-) (PWT 6.1)
Control variables:
GDP per capita (gdpc): Real per capita GDP measured in 1996 dollars. (+) (source: PWT
6.1)
OECD: This is a dummy variable with a value of 1 if a country is a member of the OECD
and 0 otherwise. (+) (source: OECD web page http://www.oecd.org)
k1-k18: Dummy variable for each year a country is in the data set
8
8
Variables k17 and k18 were dropped from the analysis by Stata for perfectly predicting failure.
Convention