Political Business Cycles in Local Indonesia
AbstractWe analyze the determinants of the excessive administrative spending of local governments in Indonesia. In an unbalanced panel data set of 399 districts for 2001‐2009, we show that the proliferation of districts has not led to increased administrative spending; instead a lack of political accountability is responsible for this excess. The degree of political competition influences the level of administrative spending significantly; newly introduced direct elections of district heads, however, did not curtail the waste.
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Bibliographic InfoPaper provided by Department of International Economic Policy, University of Freiburg in its series Discussion Paper Series with number 24.
Length: 37 pages
Date of creation: Jul 2013
Date of revision: Jul 2013
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administrative expenditures; decentralization; direct elections; Indonesia;
Find related papers by JEL classification:
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-02 (All new papers)
- NEP-PBE-2013-10-02 (Public Economics)
- NEP-POL-2013-10-02 (Positive Political Economics)
- NEP-SEA-2013-10-02 (South East Asia)
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