The purpose of this paper is to investigate the effect of public education expenditures and macroeconomic instability on human capital in Iran in period 1971-2019. For this, macroeconomic instability was first extracted using the Markov Switching-Garch (MS-GARCH) model. Then, using Nonlinear AutoRegressive Distributed Lag (NARDL) model, we saw that there is a positive and significant relationship between public education expenditure and human capital in the long-run and short-run. Also, the results of estimating the long-run coefficients of positive and negative changes in macroeconomic instability on human capital showed that both coefficients are asymmetric, negative and significant in the long run. In the short run, there is a significant relationship between positive changes in macroeconomic instability and human capital, but there is no significant relationship between negative changes in macroeconomic instability and human capital.
Ehsani, Z., Dashtban Farooji, M., & Nazari, A. (2022). The Effect of Public Education Expenditures and Macroeconomic Instability on Human Capital in Iran. Journal of Econometric Modelling, 6(5), 123-153. doi: 10.22075/jem.2022.25459.1669
MLA
Zahra Ehsani; Majid Dashtban Farooji; Azim Nazari. "The Effect of Public Education Expenditures and Macroeconomic Instability on Human Capital in Iran". Journal of Econometric Modelling, 6, 5, 2022, 123-153. doi: 10.22075/jem.2022.25459.1669
HARVARD
Ehsani, Z., Dashtban Farooji, M., Nazari, A. (2022). 'The Effect of Public Education Expenditures and Macroeconomic Instability on Human Capital in Iran', Journal of Econometric Modelling, 6(5), pp. 123-153. doi: 10.22075/jem.2022.25459.1669
VANCOUVER
Ehsani, Z., Dashtban Farooji, M., Nazari, A. The Effect of Public Education Expenditures and Macroeconomic Instability on Human Capital in Iran. Journal of Econometric Modelling, 2022; 6(5): 123-153. doi: 10.22075/jem.2022.25459.1669
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