Results of simultaneous equations model.

Columns 2 and 4 represent parameter estimates for the income and disease equations, which correspond to equations (1 and 2) in the text. The corresponding independent variables are listed in columns 1 and 3. The income, disease, and energy variables are natural logged. The estimated effect of disease on income is −0.40. This suggests that the average tropical country with a logged per capita burden of VBPDs of 1.99 would more than double their per capita income if their disease burden were reduced to that of an average temperate country of 0.19. The estimated effect of biodiversity on disease is −0.29. Thus, if the biodiversity index of a country like Indonesia (index = 663) were to lose 15% of its biodiversity (falling by 100), the burden of VBPDs would be expected to rise by about 30%. Robust standard errors are presented in parentheses below their corresponding coefficient estimates. First stage F-test is used in the second model (column 3) because there is only one endogenous variable (income). Because the first model (column 1) has multiple endogenous variables (disease and institutions), we use Shea's Partial R2 as an indicator of the strength of correlation of the IVs [75]. Bold indicates significance at the 10% level (n = 139).
JBased on Hansen's J statistic.
lnNatural log.
aUnits×10−2 units.
*p≤0.10.
***p≤0.01.