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Consider the following simultaneous equations model EXPi = B1 + B2AlDi + B3INCi + BAPOP; + uli AlDi = V1 + V2EXPi + 13PS; +

Consider the following simultaneous equations model EXPi = B1 + B2AlDi + B3INCi + BAPOP; + uli AlDi = V1 + V2EXPi + 13PS; + uzi where EXP=expenditure; AID=aid; INC=Income; POP=Population; PS=political stability index

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