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MENA Countries<br />

Risk Neutral Model<br />

Country Years m Relative wage<br />

Algeria<br />

Egypt<br />

Jordan<br />

H/H0 Theoretical<br />

gamma 0.73<br />

H/H0<br />

Theoretical<br />

gamma 0.25<br />

1991 0.0094 3.14 1.0666 1.0173<br />

1992 0.0099 3.14 1.0702 1.0182<br />

1993 0.0104 3.14 1.0736 1.0191<br />

1994 0.0103 3.14 1.0728 1.0189<br />

H/H0 Observed<br />

1995 0.0105 3.14 1.0746 1.0193 1.0286<br />

1996 0.0097 3.14 1.0689 1.0179 1.1511<br />

1997 0.0097 3.14 1.0686 1.0178 1.2208<br />

1998 0.0160 3.14 1.1147 1.0292 1.2785<br />

1999 0.0222 3.14 1.1608 1.0401 1.2977<br />

2000 0.0281 3.14 1.2066 1.0506 1.3166<br />

2001 0.0337 3.14 1.2509 1.0604 1.3361<br />

2002 0.0390 3.14 1.2931 1.0694 1.3571<br />

2003 0.0405 3.14 1.3057 1.0720 1.3793<br />

2004 0.0418 3.14 1.3157 1.0741 1.3793<br />

Mean 1.1531 1.0374 1.2745<br />

Stand.dev. 0.1003 0.0230 0.1123<br />

t-stat (<strong>the</strong>oretical and observed H/H0) -2.7295 -6.5780<br />

1991 0.0901 3.68 2.0254 1.2136<br />

1992 0.0798 3.68 1.8843 1.1911<br />

1993 0.0719 3.68 1.7803 1.1734<br />

1994 0.0565 3.68 1.5888 1.1382<br />

1995 0.0554 3.68 1.5760 1.1358<br />

1996 0.0527 3.68 1.5439 1.1294<br />

1997 0.0640 3.68 1.6805 1.1555<br />

1998 0.0619 3.68 1.6543 1.1507<br />

1999 0.0567 3.68 1.5917 1.1388 1.0485<br />

2000 0.0544 3.68 1.5639 1.1334 1.1316<br />

2001 0.0552 3.68 1.5741 1.1354 1.1529<br />

2002 0.0554 3.68 1.5767 1.1359 1.1740<br />

2003 0.0552 3.68 1.5735 1.1353 1.1950<br />

2004 0.0562 3.68 1.5853 1.1376 1.1950<br />

Mean 1.6570 1.1503 1.1495<br />

Stand.dev. 0.1429 0.0252 0.0553<br />

t-stat (<strong>the</strong>oretical and observed H/H0) 11.4420 0.0327<br />

1991 0.0796 2.38 1.3554 1.0580<br />

1992 0.0838 2.38 1.3755 1.0605<br />

1993 0.0826 2.38 1.3696 1.0598<br />

1994 0.0795 2.38 1.3546 1.0579<br />

1995 0.0828 2.38 1.3706 1.0599 1.0330<br />

1996 0.0850 2.38 1.3812 1.0612 1.0651<br />

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