Analysis of Regency / City Fiscal Inequality in Java: Impact of the Central Balance Fund

DOI

10.2991/aebmr.k.200606.071How to use a DOI?

Keywords

Government Expenditures, Balance Funds, Convergence, Java Island

Abstract

This study aims to determine the level of fiscal inequality in regencies / cities in Java which is seen from the total realization of local government expenditure, education function expenditure, health function expenditure, and economic function expenditure. The method used is the analysis of sigma convergence and conditional beta convergence to determine the impact of the central balance fund. The results obtained are based on the convergence of sigma, only the total realization of regency / city regional government spending is convergence while education function expenditure, health function expenditure, and economic function expenditure occur divergence or inequality. Different results from the estimation of beta convergence which states that all components of fiscal policy in this study lead to convergence and equilibrium funds from the center that are transferred to regency / city governments in Java can increase expenditure growth both in the total realization of regional government expenditure, expenditure functions education, spending on health functions, and spending on economic function.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Muchammad Mufti Ridwan
AU  - M. Pudjihardjo
AU  - Mohamad Khusaini
PY  - 2020
DA  - 2020/06/09
TI  - Analysis of Regency / City Fiscal Inequality in Java: Impact of the Central Balance Fund
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 417
EP  - 424
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.071
DO  - 10.2991/aebmr.k.200606.071
ID  - Ridwan2020
ER  -