Table A5.1.-Equations for current expenditures per pupil in average daily attendance, estimated average annual salaries of teachers, and education revenue receipts from state sources
1For an explanation of the Durbin-Watson statistic, see J. Johnston, Econometric Methods, New York: McGraw-Hill, 1972, pages 251-252. 2AR1 indicates an estimation procedure for correcting the problem of first-order autocorrelation. For a general discussion of the problem of autocorrelation, and the method used to forecast in the presence of autocorrelation, see G. Judge, W. Hill, R. Griffiths, H. Lutkepohl, and T. Lee, The Theory and Practice of Econometrics, New York: John Wiley and Sons, 1985, pages 315- 318.
Where:
CUREXP =
Current expenditures of public elementary and secondary schools per pupil in average daily attendance in constant 1982-84 dollars
SALRY =
Average annual salary of teachers in public elementary and secondary schools in constant 1982-84 dollars
SGRNT =
Local governments' education revenue receipts from state sources, per capita, in constant 1982-84 dollars
PCI =
Disposable income per capita in constant 1992 dollars
ADAPOP =
Ratio of average daily attendance to the population
PERTAX1 =
Personal taxes and nontax receipts to state and local governments, per capita, in constant 1982-84 dollars lagged one period
RCPIANN =
Inflation rate measured by the Consumer Price Index
RCPIANN1 =
Inflation rate measured by the Consumer Price Index lagged 1 period
ADA1 =
Average daily attendance lagged 1 period
ADA2 =
Average daily attendance lagged 2 periods
NOTE: R2 indicates the coefficient of determination. Numbers in parentheses are t-statistics. SOURCE: U.S. Department of Education, National Center for Education Statistics, Elementary and Secondary School Current Expenditures Model; Elementary and Secondary Teacher Salary Model; and Revenue Receipts from State Sources Model. (This table was prepared May 2000.)
