Optimal equity capital requirements for large Swiss banks

Swiss Journal of Economics and Statistics

Table 5 Trend model for Swiss GDP and the effects of big crises, 1892–2016

Regressor	Coefficient estimates, unrestricted	Coefficient estimates, restricted
T	0.0339 (0.00285)^***	0.0344 (0.00238)^***
D1911	− 0.0810 (0.0387)^**	− 0.196 (0.0431)^***
D1931	− 0.250 (0.0714)^***	− 0.285 (0.0595)^***
D1991	− 0.298 (0.0811)^***	− 0.285 (0.0595)^***
D2007	− 0.193 (0.0649)^***	− 0.196 (0.0431)^***
D1916	− 0.252 (0.0769)^***	− 0.109 (0.0434)^*
D1942	− 0.0621 (0.0723)	− 0.109 (0.0434)^*
D1974	− 0.107 (0.0806)	− 0.109 (0.0434)^*
Adjusted R²	0.990	0.989
Standard error of residual	0.0876	0.0912
Durbin-Watson statistics	0.699	0.561
Number of observations	125	125
F-test: δ₁ = δ₂ = δ₃ = δ₄ = δ₅ = δ₆ = δ₇	4.379^***
F-test: δ₁ = δ₂ = δ₃ = δ₄	7.734^***
F-test: δ₅ = δ₆ = δ₇	3.241^*
F-test: δ₁ = δ₄, δ₂ = δ₃, δ₅ = δ₆ = δ₇	2.076^*
δ₂ − δ₅		0.176 (0.0665)^***

Note: ^*,^**,^***Significance at the 5%, 1%, and 0.1% level, respectively
Standard errors corrected for heteroscedasticity and autocorrelation (Newey-West) are given in parentheses percent). Data sources: 1892–2005: Swiss economic and social history online database, Table Q16a, b, http://www.fsw.uzh.ch/hstat/nls_rev/ls_files.php?chapter_var=./q; 2006–2016: https://data.snb.ch/de/topics/uvo#!/cube