where ߚ is one of the constant, ߚଵ and ߚଶ are the slope parameters. ߤ௧ is the regression error term. This Muhammad Irfan Javaid Attari and Attiya Y. Javed / Procedia Economics and Finance 5 ( 2013 ) 58 – 67 61study has also divided the government expenditures into: government current expenditures; and governmentdevelopment expenditures, according to the Handbook of Statistics on Pakistan Economy, 2010. First, theindividual effect of both expenditures has been tested; and secondly, the combined effect of both expenditureshas been taken by using the same equation (3.1). The three different equations (named as M-2, M-3 and M-4)are derived as follow:
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