Mathematical model on relationship between expenditure in education and household income group in Malaysia

Abstract

This paper considers the relation between expenditure on education and household income level for the three types of income group in Malaysia. An ordinary differential equation model has been constructed using a flow diagram that shows the relation between the population of Malaysia based on the income groups with the monies invested in education. The model was solved analytically by finding the equilibrium points, and later on, the Routh-Hurwitz criterion was applied to investigate the stability of the equilibrium points. From here, a simulation has been performed to predict the effect of investment in education for each income group on household income for the next ten years. The result shows that the population in the B40 income group increased dramatically even though they have increased their expenditure on education.