1,720,968 research outputs found
Lowering Regional Inflation? Improve Budget Absorption
Get PDFThe subnational government spending in Indonesia exhibit a highly skewed distribution, i.e., it is very low in the first two-quarters and then increases significantly in the last two-quarters. Such explosive pattern poses two disadvantages. First, the regional output will fall below its optimal level as the low government capital expenditure leads to a fewer provision of public goods. Second, a significant increase in government spending in the later quarter pushes the short run aggregate demand to the northeast and creates an inflationary pressure in the following quarters. In this study, we analyze the effect of quarterly regional government expenditure growth on regional inflation during 2010-2014. Using Arellano Bond GMM estimation, we find government expenditure growth leads to higher inflation in the same quarter. A percentage increase in non-capital expenditure spending results in a higher inflation than a percentage increase in capital spending
Estimating the Effect of Penalties on Regulatory Compliance
Get PDFThis dissertation has two main objectives. First, we investigate the effectiveness of penalties and other enforcement tools on regulatory compliance, and comprehensively address problems that exist in previous regulatory compliance studies. Second, we develop a model that explains why most empirical studies of regulatory compliance yield results that seem to be inconsistent with the theoretical predictions of Harrington’s (1988) seminal article on regulatory compliance. Thus the dissertation comprises two essays. In Essay One, we estimate facility compliance with the Clean Water Act (CWA) by comprehensively addressing the problems that exist in previous studies. The first problem is the failure to take into account undetected violations. To address this problem, we employ Detection Controlled Estimation (DCE) model, developed by Feinstein (1990). The DCE variant that we use is the two-sided expectation simultaneity version. We use this version because we assume that potential violators will react to what the regulator would do, and vice versa. The second problem that we address is in the measurement of regulatory penalties. Previous studies use dummy variables, but using a continuous measure of penalty enables us to differentiate the responses of minor from substantial violators, and avoid measurement error. Finally, we use a richer set of covariates. We include variables that were found to be statistically and economically significant in different previous studies, but which have never been estimated jointly. The results in Essay One indicate that facilities do respond to penalties, but the effect is economically insignificant. We argue that the small effect of penalties in reducing noncompliance comes from the way regulators enforce the regulations: penalties are rarely imposed on detected violators, or if imposed, the amount is usually negligible. The policy implication that arises from our findings is that if regulators want to see a substantial increase in the probability of compliance, it should consider imposing more frequent and severe penalties. The positive effects of more stringent enforcement on compliance rates come from three sources: (1) through specific deterrence effect; (2) through general deterrence effect; and (3) through an increase in the probability of self-reported violations, which allows for more efficient use of inspection budgets. In Essay Two, we extend Harrington’s (1988) theoretical model by (1) introducing an imperfect detection parameter, and (2) relaxing the movement between the groups, as in Friesen (2003). The extended model shows that when detection is imperfect, the zone for the “always-violate” strategy expands. This expansion has two implications. First, when firms are uniformly distributed in cost space, the number of firms that choose the “always-violate” strategy increases. Second, any empirical study that uses major facilities will be more likely to confirm “always-violate” strategy, but fail to confirm the other two strategies discussed in Harrington (1988). We also discuss other possibilities that can contribute to the difference between empirical results and theoretical predictions
Correlation between Sanitation Facilities and Health Outcomes in Indonesia
Get PDFPoor sanitation is a significant contributor to health problems in developing countries. The improper handling of household waste contaminates soil, surface water, and groundwater, posing health risks to communities through water consumption and exposure. This study utilizes data from the National Socioeconomic Survey (Susenas) conducted by the Indonesian Central Bureau of Statistics (BPS) from 2016 to 2018 to examine the relationship between sanitation facilities and household health quality in Indonesia, analyzing a sample of 883,845 households. Using ordinary least squares (OLS) regression, the findings indicate that households with adequate sanitation facilities generally experience better health outcomes. This study underscores the importance of policy prioritization in establishing communal waste treatment facilities, such as wastewater treatment plants (WWTPs), particularly in densely populated areas. This approach aims to mitigate the adverse health impacts of domestic waste pollution on public health
Perbandingan Dampak Alokasi Anggaran terhadap Pendapatan dalam Dua Rezim: Pilkada Langsung Versus Tidak Langsung
Get PDFThis study compares the impact of budget allocations between regions that have carried out direct regional elections and indirectly and their impact on regional per capita income. The budget allocation uses the allocation of capital expenditure and indirect expenditure on the Regional Expenditure Budget (APBD) of regencies and cities in Indonesia. Empirically, in the 2005-2010 period in Indonesia, the estimation results using Pooled Least Square did not show a significant difference in the impact of budget allocation on regional per capita income between the regime and direct versus indirect elections. But regionally there are significant differences in districts and cities in the island group of Sumatra when compared with other island groups in Indonesia, namely there are differences in the impact on the total budget that affects the per capita income where the average head of the region elected through the direct election impacts lower than indirectly selected regional heads
Oil Exploration Economics: Empirical Evidence from Indonesian Geological Basins
Get PDFOil exploration has been subject to economic research for decades. Earlier studies of exploration models are mostly discussed the behavior of exploration at the macro-level analysis such as field, firm, region, and continental. This paper then focuses on the geological and economic factors that determine the well-drilling decision at the micro-level using disaggregated panel data of 32 geological basins in Indonesia over the period of 2004-2013. This study shows that the number of drilled wells is determined significantly by the lag of success rate, lag of discovery size, lag of global oil price, and regional location of geological basin
Fuel Availability and Java Households Cooking Fuel Choices: Evidence from Indonesia’s LPG Subsidy Policy
Get PDFIn 2007, Indonesia launched a 3 kg Liquified Petroleum Gas (LPG) cylinder for poor households, and micro-enterprises were started on Java island to reduce the burden of fuel subsidies. In its implementation, the subsidized LPG may also be used by non-target households, which has implications for the government’s fiscal burden. To avoid this, it is necessary to understand household behavior towards non-subsidized LPG choices. Household income and fuel availability determine the choice of household cooking fuel types. However, existing studies have not seen the relationship between subsidized and non-subsidized LPG as a household cooking fuel. Using rich data from the March 2018 National Socio-Economic Survey (Susenas) and the Ministry of Energy and Mineral Resources (KESDM) information, this study examined the relationship between income, subsidized LPG quota as a representation of the availability of subsidized fuel, and non-subsidized LPG choices as household cooking fuel in Java in 2018. The Multinomial Logit model's estimation results found that an increase in income and a decrease in subsidized LPG quotas were correlated with an increase in the opportunity to choose non-subsidized LPG as household cooking fuel in Java in 2018. Furthermore, this study revealed that the largest subsidized LPG users were non-poor households
The Determinants of Household Spending on Alcohol and Tobacco in Tanzania
Get PDFThe increasing effects caused by alcohol and tobacco calls for necessary interventions. This is not only in developed countries, but also in developing countries which seems to be affected more by this problem. Studies show that 80% of smokers worldwide are living in developing countries where tobacco related diseases have become major factors contributing toward high morbidity. Moreover, excessive alcohol consumption has been among global public health problems, where it accounts for about 6% of mortality and 5% of disability in the world. In addition, the prevalence of Alcohol Use Disorders (AUD) was reported at 4% globally while in Africa it was 3%. Tanzania being the developing country and located in Africa is also at risk to be affected more if the necessary measures to control this unhealthy behaviour are not taken. However, due to limited information about the structure and behaviour of people in spending and consumption of these addictive products in Tanzania, it will be difficult to prepare relevant measures to curb those problems. Therefore, by using Tobit regression model, this study examined the influence of socioeconomic characteristics on alcohol and tobacco spending. This study found factors such income, culture, and change in preference over time to have a significant relationship with spending on alcohol and tobacco. This study creates a base for alcohol and tobacco spending behaviour in Tanzania. After determining spending behaviour, further studies need to be conducted to examine consumption behaviour and its effects to prepare relevant measures to control the risks of alcohol and tobacco in Tanzania
Keterpilihan Dinasti Politik pada Pilkada Kabupaten/Kota di Indonesia Tahun 2017-2020
Get PDFThe main purpose of this study was to examine whether the health variable as proxied by government health insurance participation and the infrastructure variable as a proxy for steady road conditions were correlated with the electability of political dynasties in the district/city elections in Indonesia in 2017-2020. This study tested using an average of 5 years before the 2017, 2018 and 2020 elections and the sample used was 508 districts/cities. This study uses a probit and a heck-probit regression model. The results of the selection bias control show that the health interest variable, namely BPJS Non-PBI, significantly reduces the probability of being elected to a political dynasty. This negative direction is a form of retrospective economic voting in political dynasties. Voters consider that the government has no role in providing free health facilities. Voters must pay BPJS Non-PBI membership dues through their employers or pay them independently. Meanwhile, the infrastructure interest variable in the form of steady road conditions significantly increases the probability of being elected to a political dynasty. This indicates that improving road conditions is effective in increasing the electability of political dynasties and the community makes road conditions a tool for retrospective economic voting in political dynasties
EKSTERNALITAS PRODUKSI KERAMBA JARING APUNG WADUK JATILUHUR
Get PDFPada sistem budidaya keramba jaring apung terdiri dari beberapa subsistem salah satunya adalah subsistem proses produksi yang didalamnya terdapat aktivitas pemberian pakan. Tujuan dari penelitian ini untuk menganalisis pengaruh dari eksternalitas pemberian pakan terhadap produktivitas KJA. Penelitian dilakukan di Waduk Jatiluhur pada bulan Agustus-Oktober 2018. Pengumpulan data dilakukan secara primer dengan responden berjumlah 502 pembudidaya. Analisis data dilakukan secara kuantitatif dengan menggunakan persamaan regresi dan kualitatif dengan menggunakan analisis persepsi. Hasil dari estimasi menunjukkan eksternalitas pakan berupa limpahan sisa pakan yang tidak termakan memberikan dampak positif bagi produktivitas budidaya KJA secara langsung. Selanjutnya dari analisis persepsi responden setuju jika diadakan penertiban dengan cara pembatasan jumlah kepemilikan KJA tiap orang tetapi bukan dengan penertiban KJA hingga habis agar tidak timbul eksternalitas negatif secara langsung dari pemberian pakan. Rekomendasi yang bisa disarankan tetap dilakukan penertiban dan pembatasan jumlah KJA disertai dengan peningkatan pengawasan aktif agar tidak terjadi pembangunan KJA secara illegal
Price Smoothing Behavior of Cigarette Firms in Indonesia
Get PDFResearch Originality: This research analyzes the price-smoothing behaviors of cigarette firms across various cigarette types, firm classifications, and government policies by using quarterly data at the brand level.Research Objectives: This research aims to identify the price-smoothing tendencies of cigarette firms in Indonesia by analyzing the change in market retail price across various cigarette types and firm classifications and the impact of government policies.Research Methods: This research used quarterly market retail price survey data covering all cigarette brands available in Indonesia from March 2014 to June 2021. The System Generalized Method of Moments (System GMM) was identified as the optimal estimation method.Empirical Results: The results showed that cigarette firms in Indonesia employed price-smoothing strategies in response to implementing the tariff increase policy. Notably, substantial price increases tend to occur in December, immediately following the announcement of the tariff increase policy. Removing one of the ceiling price criteria has led to an increase in the average price of cigarettes within the specified criteria. The implementation of a minimum price had no significant impact on price changes.Implications: This study\u27s findings suggest that to address the issue of rising smoking prevalence, the government should consider implementing a more substantial tariff increase to counteract the impact of price-smoothing.JEL Classification: H24, H31, H32, I1
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