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Inequality After the TransitionPolitical Parties, Party Systems, and Social Policy in Southern and Postcommunist Europe$
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Ekrem Karakoç

Print publication date: 2018

Print ISBN-13: 9780198826927

Published to Oxford Scholarship Online: October 2018

DOI: 10.1093/oso/9780198826927.001.0001

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Cross-National Test of the Theory

Cross-National Test of the Theory

(p.56) 3 Cross-National Test of the Theory
Inequality After the Transition

Ekrem Karakoç

Oxford University Press

The previous chapter posed the primary research question and offered a new theory that encompassed two interrelated arguments. This chapter produces three hypotheses derived from the new theory offered in Chapter 2. Chapter 3 tests these arguments in a large-N study using multivariate statistical analysis. The first section discusses the operationalization of our main dependent and independent variables. It will also briefly outline a set of control variables and what the literature predicts regarding their effect on spending and inequality. These factors range from economic factors (globalization, inflation, female labor participation, economic development), political factors (partisanship, electoral systems, election cycle), and demographic factors. To correct for problems associated with the nature of panel data models, such as endogeneity, heteroskedasticity, and autocorrelation, it uses the Arellano-Bond estimation, which uses the Generalized Method of Moments. The rest of the chapter presents the results and offers its interpretation and conclusion.

Keywords:   panel data, Arellano-Bond, panel-corrected standard errors, fixed effects, globalization, Europe, volatility

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