ArticleOpen Access http://dx.doi.org/10.26855/jamc.2021.09.003
Regression with ARIMA Error Model for Government Expenditure in Sri Lanka
Kalana N. Alupotha
Actual Growth Consultancy (Pvt) Ltd, 431/1, “Indunil”, Gohagoda, Katugastota, Sri Lanka.
*Corresponding author: Kalana N. Alupotha
Published: August 24, 2021
Abstract
The economic growth of a country is directly influenced by fiscal policy variables such as government expenditure. Abnormal government expenditure is an important macroeconomic problem faced by the countries at different points of time. In Sri Lanka, for last three decades, unusual government expenditure has become a one of the severe macroeconomic problems and moreover it has led to persistent budgetary deficit as well. Hence, analyzing government expenditure in Sri Lanka will give us a clear deportment of the economy and it has become crucial as abnormal government expenditure can be vulnerable. In this paper, regression with ARIMA error model for government expenditure in Sri Lanka has been derived by analyzing an annual authentic data set from 1981 to 2016 and the model has been verified using standard statistical techniques. Finally, in order to illustrate the precision of the model, actual and forecasted values have been depicted in one graph.
Keyword
Government Expenditure, Regression, ARIMA Error Model
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Copyright
© 2021 by the author(s).
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How to cite this paper
Regression with ARIMA Error Model for Government Expenditure in Sri Lanka
How to cite this paper: Kalana N. Alupotha. (2021) Regression with ARIMA Error Model for Government Expenditure in Sri Lanka. Journal of Applied Mathematics and Computation, 5(3), 165-170.
DOI: http://dx.doi.org/10.26855/jamc.2021.09.003