Flypaper Effect of Regional Expenditures in Yogyakarta

Muh Rudi(1*)
(1) Faculty of Islamic Economics and Business, Universitas Islam Negeri Sunan Kalijaga Yogyakarta
(*) Corresponding Author
DOI : 10.22515/shirkah.v2i3.168

Abstract

One of the consequences as a  result of the implementation of regional autonomy is that local governments must have sufficient financial resources to pay their autonomy government. The financial capacity of local governments would determine the ability of local governments to perform the functions of government. Considering Article 5 of Law No. 33, 2004, sources of regional revenue are regional revenues, balance funds/ transfers and financing. When local revenue comes from the transfers, the stimulation of expenditure is different from the stimulation that arises from local revenue (especially local taxes). This study focuses on identifying the flypaper effect on expenditure areas and its classification with samples of five districts and cities in Yogyakarta during 2006-2015. This paper argued that during the period among flypaper did not occur in the expenditure area and sub expenditure areas. In addition, flypaper found only in capital expenditure, while expenditure is not a suspect.

 

Keywords: flypaper, autonomy and fiscal needs, local autonomy, Yogyakarta

References


Auerbach, Alan J. and William G. Gale. (2009). The Economic Crisis and the Fiscal Crisis: 2009 and Beyond. California: Burch Center for Tax Policy and Public Finance at the University of California, Berkeley

Baskaran, T. (2016). Intergovernmental Transfers, Local Fiscal Policy, and the Flypaper Effect: Evidence from a German State. Finanz Archiv 72(1), 1-40.

Hermani, A. (2007). Impact Decentralization Fiscal to Economy in district Brebes and the City of Tegal. Thesis Magíster Science. Post Graduate program Bachelor Intitut Agriculture, Bogor.

Isdijoso, Brahmantio. (2002). Analysis Policy Fiskal Pada Era Otonomi Daerah ( Studi Kasus : Sektor Education di Kota Surakarta). Study Economics and Keuangan Vol. 6 No. 1.

Jeyhoon-Tabar, F., Maddah, M. (2016). Studying the Flypaper Effect in The Provinces of Iran (2000-2013). Iranian Economic Review 20(3), 337-354.

Karnik, Ajit, and Mala Lalvani. (2008). "Flypaper Effect Incorporating Spatial Interdependence." Review of Urban & Regional Development Studies 20, no. 2: 86-102.

Kim, Jungbu. (2007). Do Different Expenditure Mechanisms Invite Different Influences? Evidence From Research Expenditures Of The National Institutes Of Health. Georgia State University and the Georgia Institute of Technology.

Leduc, S., Wilson, D. (2017). Are State Governments Roadblocks to Federal Stimulus? Evidence on the Flypaper Effect of Highway Grants in the 2009 Recovery Act. American Economic Journal: Economic Policy 9(2), 253-292.

Lewis, Blane D. (2003). Some Empirical Evidence on New Regional Taxes and Charges in Indonesia. Research Triangle Institute, North Carolina, USA.

Maimunah , Mutiara . (2006). Flypaper Effect Pada Dana Alokasi Umum (DAU) dan Income Asli Daerah (PAD) terhadap Belanja Daerah Pada Kabupaten / Kota di Pulau Sumatra. SNA IΧ , Padang 23-26 Agustus 2006

Marothia, D.. (2010). Decentralisation of Natural Resource Management in India: An Institutional Perspective*. Indian Journal of Agricultural Economics 65 , no. 1, (January 1): 1-34.

Mauro, Paolo. (2005). Corruption and the composition of government expenditure. International Monetary Fund. Journal of Public Economics 69 (1998) 263–279

Melo, Ligia. (2005). The Flypaper Effect under Different Institutional Contexts: The Colombian Case. Public Choice 111, no. 3-4, (April 1): 317 345.

Permendagri Nomor 13 Tahun 2006

Persha, L., and T. Blomley . (2009). Management Decentralization and Montane Forest Conditions in Tanzania. Conservation Biology 23, no 6 (Dec 1): 1485-1496.

PP Nomor 58 Tahun 2005

Prakosa, Kesit Bambang. (2004). Analysis Pengaruh Dana Alokasi Umum (DAU) dan Income Asli Daerah (PAD) Terhadap Prediksi Belanja Daerah ( studi empiric di wilayah Propinsi Jawa Tengah dan DIY). JAAI . Vol. 8 No. 2.

Purbadharmaja, Ida Bagus Putu. (2007). Study To Function Budget Dalam Pembangunan Ekonomi Daerah. Buletin Studies Ekonomi Volume 12 Nomor 3.

Regulska, J. (2009). Governance or Self-governance in Poland? Benefits and Threats 20 Years Later. International Journal of Politics, Culture, and Society 22 , no. 4, (December 1): 537-556.

Richard Peck. (2005). Local Governance In Africa: The Challenges Of Democratic Decentralization. Review of Africa Today 51 , no. 3, (April 1): 138-140.

Robinson, Peter dan Harun. (2004). Reforming The Indonesian Public Sector: The Introduction of Accrual Accounting. Accepted for Presentation at the Fourth Asia Pacific Interdisciplinary Research in Accounting Conference 4 to 6 July 2004 Singapore

Roy, S., Ara, J., Das, N., Quisumbing, A.R. (2015). "Flypaper Effects" in Transfers Targeted to Women: Evidence from BRAC's "Targeting the Ultra Poor" Program in Bangladesh. Journal of Development Economics 117, 1-19.

Seabright , Paul. (1996). Accountability and decentralisation in government: An incomplete contracts model. European Economic Review . Vol. 40, 61-89

Siregar, B., Badrudin, R. (2017). Degree of Fiscal Decentralization and Flypaper Effect: Evidence from Indonesia. Advanced Science Letters 23(9), 9013-9019.

Stephen J Bailey, & Stephen Connolly. (2008). The flypaper effect: Identifying areas for further research. Public Choice (1986-1998), 95(3-4), 335. Retrieved May 18, 2013, from ProQuest Sociology. (Document ID: 618057781).

Sundatoko, Djoko. (2003). Dilema Otonomi Daerah. Yogyakarta: Andi .

Teferi, Abate. (2004). 'Decentralised there, centralised here': local governance and paradoxes of household autonomy and control in north-east ethiopia , 1991-2001. Africa 74, no. 4, (January 1), 611-632.

UU No. 33 tahun 2004

UU Pajak Daerah dan Retribusi Daerah Tahun 2009

Venter, Denis. (2007). Democracy And Multiparty Politics In Africa. Eassrr , vol. XIX, no. 1 (January 2007)

Warner, M. (2009). Civic government or market-based governance? The limits of privatization for rural local governments. Agriculture and Human Values 26, no. 1-2, (March 1), 133-143.

William, Gavin. (2008). Target zone dynamics where the fundamental follows a SDE with periodic forcing. Monetary Authorities - Central Bank , Sep/Oct2005, Vol. 87 Issue 5, 633-658.

Winarno, Wing Wahyu. (2009). Analysis Ekonometrika and Statistics with Eviews. Yogyakarta: UPP STIM YKPN

Yuliadi, Imamudin. (2007). Perekonomian Indonesia: Masalah and Implementasi. Yogyakarta: UPFE UMY.


Article Statistic

Abstract view : 262 times
PDF views : 194 times

How To Cite This :

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.