The dependent variable of the regression is the first difference of the ratio of uninsured deposits to total deposits. A generalized-method-of-moments model (GMM) optimizes the values of the coefficients on the following:

• the vector of alphas for three lags of the dependent variable, the first difference of the ratio of uninsured deposits
• beta, the coefficient for the uninsured interest rate margin
• the vector, rho, of coefficients for the first difference of the lagged bank-specific variables
• the vector, theta, of coefficients for the first differences of the macroeconomic variables
• and a bank-specific error term epsilon in first differences

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