without china, Vietnam, Russia and Ukraine

                       PANEL DATA ESTIMATION
                       =====================

 Balanced data:  NI=     7, T=    8, NOB=     56
                                      MEANS

               LOG_INFL        GDP_GR 
        1       2.06828      -5.32500 
        3       1.11727      -0.20000 
        4       1.37638      -1.33750 
        5       1.62957       1.37500 
        6       1.86046      -1.51250 
        8       1.07803      -0.51250 
        9       1.58225      0.075000 


 TOTAL (plain OLS) Estimates:

 Dependent variable: LOG_INFL

        Mean of dep. var. = 1.53032           R-squared = .348013
   Std. dev. of dep. var. = .549537  Adjusted R-squared = .335939
 Sum of squared residuals = 10.8292        LM het. test = 2.95982 [.085]
    Variance of residuals = .200540       Durbin-Watson = .592512 [.000,.000]
 Std. error of regression = .447817

            Estimated    Standard
 Variable  Coefficient     Error       t-statistic   P-value
 GDP_GR    -.052812      .983695E-02   -5.36878      [.000]
 C         1.47421       .060748       24.2676       [.000]

 F test of A,B=Ai,Bi:  F(12,42) = 5.0478,  P-value = [.0000]
 Critical F value for diffuse prior (Leamer, p.114) =   4.7924    

 BETWEEN (OLS on means) Estimates:

 Dependent variable: LOG_INFL

        Mean of dep. var. = 1.53032  Std. error of regression = .327538
   Std. dev. of dep. var. = .367381                 R-squared = .337615
 Sum of squared residuals = .536407        Adjusted R-squared = .205138
    Variance of residuals = .107281              LM het. test = 2.43802 [.118]

            Estimated    Standard
 Variable  Coefficient     Error       t-statistic   P-value
 GDP_GR    -.101138      .063354       -1.59639      [.171]
 C         1.42286       .140915       10.0973       [.000]

 WITHIN (fixed effects) Estimates:

 Dependent variable: LOG_INFL

        Mean of dep. var. = 1.53032           R-squared = .639899
   Std. dev. of dep. var. = .549537  Adjusted R-squared = .587385
 Sum of squared residuals = 5.98108        LM het. test = 4.48344 [.034]
    Variance of residuals = .124606       Durbin-Watson = 1.09393 [.000,.000]
 Std. error of regression = .352996

            Estimated    Standard
 Variable  Coefficient     Error       t-statistic   P-value
 GDP_GR    -.047253      .818797E-02   -5.77098      [.000]

 F test of Ai,B=Ai,Bi:  F(6,42) = 2.4421,  P-value = [.0408]
 Critical F value for diffuse prior (Leamer, p.114) =   3.7747    

 F test of A,B=Ai,B:  F(6,48) = 6.4845,  P-value = [.0000]
 Critical F value for diffuse prior (Leamer, p.114) =   4.3139    

 Variance Components (random effects) Estimates:

 VWITH (variance of Uit)   =  0.12461    
 VBET  (variance of Ai)    =  0.75934E-01
 (computed from small sample formula)
 THETA (0=WITHIN, 1=TOTAL) =  0.17021    

 Dependent variable: LOG_INFL

        Mean of dep. var. = 1.53032           R-squared = .348013
   Std. dev. of dep. var. = .549537  Adjusted R-squared = .335939
 Sum of squared residuals = 10.8716        LM het. test = 3.04866 [.081]
    Variance of residuals = .201326       Durbin-Watson = .598968 [.000,.000]
 Std. error of regression = .448693

            Estimated    Standard
 Variable  Coefficient     Error       t-statistic   P-value
 GDP_GR    -.048288      .810896E-02   -5.95484      [.000]
 C         1.47901       .114661       12.8991       [.000]

 Hausman test of H0:RE vs. FE:  CHISQ(1) = 0.83182,  P-value = [.3617]