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Determinants of local public expenditures on education: empirical evidence for Indonesian districts between 2005 and 2012

Author

Listed:
  • Ivo Bischoff

    (University of Kassel)

  • Ferry Prasetyia

    (Brawijaya University)

Abstract

We provide an empirical analysis of the factors that drive expenditures on primary and secondary education in Indonesian districts. We use a panel-data set covering 398 districts between 2005 and 2012. We account for the impact of socio-economic, political and geographical factors on expenditures per pupil and on the share of the overall budget spent on education. Our results are in line studies from other countries showing that educational expenditures are rising in the municipalities’ fiscal capacity. Landlocked districts are found to spend less on education than non-landlocked ones. We find some support for the notion that the share of educational expenditures in total expenditures increases in the demand for education, though our indicators for demand are not associated with higher expenditures per pupil. Somewhat surprisingly, the characteristics of the local municipal council do not influence educational expenditures.

Suggested Citation

  • Ivo Bischoff & Ferry Prasetyia, 2015. "Determinants of local public expenditures on education: empirical evidence for Indonesian districts between 2005 and 2012," MAGKS Papers on Economics 201532, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201532
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    References listed on IDEAS

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    More about this item

    Keywords

    Indonesia; local government; educational expenditures; determinants;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East

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