Econometric techniques applied to the relationship between education and GNP
Sly, Diane S.
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The goal of this paper was to study the role of government expenditures on education. Data gathered on states’ GNP and their educational budgets were statistically analyzed. Laboratory work, in the analysis of the data, was performed on Superwylbur’s SAS package. Procedures such as the econometric technique of Wiener-Granger’s Causality testing were also implemented. The major finding was that the direction of causation was not in the direction that most studies concluded, ED->GNP. The results showed causation from GNP->ED. The study was limited to six states due to time and knowledge. Readers should not be discouraged by the limited sample, but should see the paper as a beginning in the progress toward a better understanding of the causation, GNP->ED.