Quantifying the economic impact of government and charity funding of medical research on private research and development funding in the United Kingdom

Table 4 Modelling government expenditure and charity expenditure as two separate variables

Cointegration equation	Cointegration equation 1
Lnprivate (−1)	1
Lngoverment (−1)	−0.66
	(0.18)
	[−3.57]
Lncharity (−1)	−0.21
	(0.09)
	[−2.36]
Lnsale (−1)	0.16
	(0.21)
	[0.75]
Intercept	−3.34
Error Correction	D(Lnprivate)	D(Lngoverment)	D(Lncharity)	D(Lnsale)
Cointegration equation 1	−0.08	0.01	0.14	−0.00
	(0.03)	(0.01)	(0.05)	(0.01)
	[−2.99]	[1.63]	[3.08]	[−0.47]
D(lnprivate(−1))	−0.20	−0.01	−0.21	0.01
	(0.06)	(0.01)	(0.10)	(0.01)
	[−3.38]	[−0.74]	[−2.00]	[1.05]
D(lngoverment(−1))	0.10	−0.16	−0.04	−0.08
	(0.30)	(0.07)	(0.52)	(0.07)
	[0.34]	[−2.45]	[−0.07]	[−1.17]
D(lncharity(−1))	−0.01	−0.00	−0.11	0.01
	(0.04)	(0.01)	(0.06)	(0.01)
	[−0.34]	[−0.12]	[−1.82]	[1.60]
D(lnsale(−1))	0.30	0.02	0.18	0.16
	(0.26)	(0.06)	(0.44)	(0.06)
	[1.16]	[0.40]	[0.40]	[2.55]
Intercept	0.06	0.04	0.15	0.06
	(0.03)	(0.01)	(0.05)	(0.01)
	[2.10]	[5.91]	[3.05]	[7.98]
R²	0.10	0.04	0.06	0.05
Adj. R²	0.08	0.02	0.04	0.03
Sum sq. resids	27.97	1.30	81.67	1.53
SE equation	0.34	0.07	0.58	0.08
F-statistic	5.49	1.82	2.95	2.30
Log likelihood	−80.96	302.94	−214.88	281.99
Akaike information criterion	0.70	−2.38	1.77	−2.21
Schwarz SC	0.78	−2.29	1.85	−2.12
Mean dependent	0.07	0.03	0.14	0.07
SD dependent	0.35	0.07	0.59	0.08
Determinant resid covariance (dof adj.)		1.23 × 10^–06
Determinant resid covariance		1.12 × 10^–06
Log likelihood		294.17
Akaike information criterion		−2.13
Schwarz criterion		−1.73

Standard errors in () & t-statistics in []
Sample adjusted for a period between 1984 and 2008
There are 250 observations included after adjustments
D(lngoverment): first difference of log government expenditure; D(lncharity): first difference of log charity expenditure; D(lnprivate): first difference of log private sector expenditure; D(lnsale): first difference of log sales; Lngoverment (-1): log government expenditure with one year lag; Lncharity (-1): log charity expenditure with one year lag; Lnprivate (−1): log private sector expenditure with one year lag Lnsale (−1): log sales with one year lag; D(lngoverment(−1)): first difference of log government expenditure with one year lag; D(lncharity(−1)): first difference of log charity expenditure with one year lag; D(lnprivate(−1)): first difference of log private sector expenditure with one year lag; D(lnsale(−1)): first difference of sales with one year lag

ISSN: 1741-7015