The Long-Run Relationship between Income and Government Expenditure of Education and National Defense

• Main Authors: Yinn-hau Lin, 林胤豪
• Other Authors: 林其昂
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/59396396653864676960

碩士 === 國立政治大學 === 財政研究所 === 87 === We are going to dicuss the long-run relationship between income and govnernment''s education and national defense expenditure in Taiwan.We start at testing wheather income ,education expenditure ,and national defense have unit or not. We find all the series have the characteristic of unit root.It shows that they are not stationary.Then we use Granger''s cointegration test,and see that the series of income and education got the relationship of cointegration,instead that of income and national defense. Finally,we test long- run relationship by Granger causality.Due to the existence of cointegration between income and education expenditure,we can use two-steps OLS to test whether there exist Granger causality between them,and we find income will affect education expenditure ,however education expenditure will not affect income.And we use F test to find the Granger causality between income and nation defenseand we get the conclusion that there exists a bilateral Granger causality.It means that they will affect each other.