1. With the exception of the average government wage to per capita GDP (which comes from the World Bank), all our variables are from PT's dataset. These variables are the following: Central government expenditures as a percentage of GDP: constructed using the item Government Finance-Expenditures in the IFS, divided by GDP at current prices and multiplied by 100. Source: IMF-IFS CD-Rom and IMF-IFS Yearbook. Consolidated central government expenditures on social services and welfare as percentage of GDP: from the GFS Yearbook;Imf-Ifs Cd-Rom;Appendix B: Data Sources and Definitions Our dataset builds on the cross-country dataset compiled by Persson and Tabellini,2000
2. These later observations are computed on the basis of the latest observation available from the Penn Word Tables and the growth rates of GDP per capita in the subsequent years computed from the series of GDP at market prices (in constant 1995 U.S. dollars) and population, from the World Development Indicators. Sources: Penn World Tables -mark 5.6 (PWT);Log GDP per capita: per capita real GDP defined as real GDP per capita in constant dollars (chain index) expressed in international prices, base year 1985
3. Average government wage relative to per capita GDP: mean value of the average government wage to per capita GDP between 1991 and 2000. It is computed as the average of the two data points available for the periods 1991-95 and 1996-2000. When data for one of the two periods are not available, only the available time period is used. The variable is calculated by dividing the average government wage by the GDP per capita figure. The average government wage is calculated as the total central government wage bill divided by the number of employees in total central government. The total central government wage bill is the sum of wages and salaries paid to central government employees, including armed forces personnel. The number of employees in total central government is the sum of total civilian central government and the Armed Forces. Source: Schiavo-Campo;Age structure variables: percentage of population between the ages of 15 and 64 in the total population and percentage of population over the age of 65 in the total population,1997
4. Politics and Economics in Weak and Strong States;Daron Acemoglu;Journal of Monetary Economics,2005