How Government’s Fiscal Spending Would Affect Epidemic Diseases

Abstract

This paper aims to discuss whether the government’s fiscal spending would affect the possibilities that people will be infected by epidemic diseases. The paper mainly utilizes empirical analysis to discuss the relationship between the two variables and implements the fixed effect into the model. The empirical analysis has considered the fixed effects and add controlled variables to the analysis, which aims to simulate the real-world scenario and make the result more comprehensive and convincing. Also, it constructs t-tests to verify the significance of the coefficients. Then, the paper limited the scope for analysis, which means it separates all regions into East, Middle, and West, and then does the empirical analysis respectively to make conclusions more specific to certain conditions. After the analysis, the test results display the significance for linear relationship between two variable. Therefore, this paper concludes that government fiscal spending would inversely affect the rate people would be infected by infectious diseases.