GDP per capita Among the various factors that influenced education expenditure, GDP per capita is the key indicator. The government sets the annual budget based on the level of GDP per capita, so low levels of GDP per capita result in a higher budget deficit that can boost the economy. For example, (Strawczynski & Zeira, 2003) implied that education spending has increased significantly due to population growth and increased per capita income, when they conducted a study for Israel for the period 1962-1998. Using cointegration regressions, a positive relationship was depicted by the main economic variable, GDP per capita. GDP per capita together with population determines the effect of a reduction in population, but population remains positive. Adolph Wagner's theory, Wagner's Law, is supported by a key article (Busemeyer, 2007). The law became popular after earlier work by leading economists such as Adam Smith, who argued that over time, as the economy develops, government spending should increase. The study explored 21 OECD democracies' relationship between GDP per capita and public spending on education over the period 1980-2001. Using different classifications of variables, he found that the economic variable (GDP per capita) was positively associated with government spending on education. However, during this period there were only 30 members of the OECD, excluding Israel. However, similar results to (Strawczynski & Zeira, 2003) are reported. (Busemeyer, 2007) also pointed out that a country's well-being has a substantial impact on education spending, where a country with strong economic development has opportunities for education expansion. When including country fixed effects, the law is not specified. (Lamartina & Zaghini, 2011) also agree with The Wagner… halfway through the paper… so there hasn't really been a debate whether the two expenses are substitutes or complements. (Morales, et al., 2013) and (Wolf & Zohlnhofer, 2009) had consistent results. They found a negative correlation between public and private spending on education regardless of the given dependent variable. However, none of the studies had reached a conclusion about whether the two expenses replaced or complemented each other, due to the signals changing when the various models were regressed. (Strawczynski & Zeira, 2003) also found an opposite relationship when looking at the impact of public spending on private spending. spending on education. Running two models with different time periods still produced a negative coefficient. The results were not surprising as it was expected that the relationship would be negative, as public and private spending on education are complementary in Israel.