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Table 3. Characteristics of Variables
Variables Max
Min
Mean
Dependent variables
Per capita tax return
7.38
3.53
5.09
Per capita central transfer (excluding tax return)
8.47
2.71
5.12
Explanatory variables
Historical factors
Lagged per capita tax return
7.01
3.03
5.04
Lagged per capita central transfer (excluding tax return) 8.20
2.71
5.00
Local fiscal and economic conditions
Per capita GDP
10.61
7.53
8.77
Per capita budgetary revenue
8.37
4.49
5.96
Per capita budgetary constructive expenditure
7.75
3.56
5.08
Ratio of deficit to budgetary revenue
7.49
2.63
4.40
Local public services
Hospital beds per thousand people
1.77
0.43
0.99
Illiteracy rate
4.03
1.47
2.49
Unemployment rate
7.4
0.4
3.31
Local bargaining power
Minority 1
0
0.16
Political representation score
11
1
5.42
Control variable
Inflation rate
4.78
4.55
4.63
The results of the statistical analysis are presented in Table 4 below:
39
For all the explanatory variables that are skewed, I transform them by taking log.