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"The Focus of this study is crowdi.ng out effect and public choice mechanism i.n determination of education expenditures of local government. Education spending has risen significantly over three last decades. Indonesia 2001's decentralization is rapidly moving the country from one of the most centralized system in the world to one of the most decenualized. The country has embarked on a program of fiscal, administrative and political decenu-alization at the same time. It has been asserted that larger education expenditures have caused local governments to spend less on other types of government services. Using panel of districts-level data for the period of 2001-2005, this study provides a test of the hypothesis that education spending has crowded out other types of spending and ties to find out which party in Indonesia that have preference in education. The results indicate that,for the period studied, there is evidence that i.ncreased local government education expenditures resulted in lower levels of speding on other categories of local government provided good and services. Only four parties that pro education are Golkar,Partai Keadi1an,Partai Persatuan Pembangunan(PPP) and Partai Kebangkitan Bangsa (PKB). Other results showed that districts located in Java spend higher education expenditures than out of Java and districts with natural resource revenue shares have higher education expenditures as well."

"This study tries to measure the optimum size of regional government (municipality/city) which will support the accomplishment of decentralization policy ?s objectives. The result of this study will conclude how the reformation pattern toward regional government in Indonesia should be done. The result of regressing translog and quadratic functions using cost per capita minimalization approach shows the existence of economy of scale from the size of municipality/city?s population. Using maximization approach, ¡t is also shown that Municipality/city government expenditure ¡s not efficient yet and has not supported the efforts to accomplish the desired development performance. With various regulations, the significant variable used in the measurement of optimum size is the number of population.The result of using minimization and maximization approaches show that the optimum size for municipality/city is not single (differ), between municipality and city, among each kind of per capita expenditure, and across tìme. Generally, the optimum and minimum size of population for municipality/city such that per capita expenditure can be minimized and such that Regional GDP per capita increases are approximately two million people. The reality of municipality/city?s size which in general is relatively small compared to the optimum and minimum measurement shows the inefficiency of municipality/city government expenditure, and its ineffectiveness to support the effort to enhance the welfare of society. Hence, territoty extension policy performed this far, is actually worsen the accomplishment of its main objective on conducting regional government and development."

"There are several factors influencing the financial system stability, namely the internal and the external factors. The occurrence of stock price volatility internationally, the contagion effects and the spillover effects are some external factors that have effect on the financial system stability. This research aims to know the dynamic relationship of regional and global stocks market in international financial system, and then do the analysis of the occurrence of contagion effects and spillover effects on stock price, and see their influence on domestic economics, monetary policy and financial system stability, by GARCH-VAR model.The results of this research indicate that there are some domination of the mature financial market to regional and domestic market. Moreover, the nearby regional stock price index also have a big contribution to the movement of other regional stock price market. The impact of stock price volatility to the IDR exchange rates volatility is relatively small, but not to the price level which is significantly large. Data analysis shows that there is contagion effects in stock market, but the spillover effect from stock price volatility to exchange rates volatility does not occur."

"Tesis ini membahas mengenai indikasi crowding out effect yang terjadi dalam penentuan anggaran daerah dan public choice yang melibatkan beberapa partai politik besar dalam penentuan anggaran di daerah. Pelaksanaan desentralisasi yang telah dilakukan sejak tahun 2001 silam selain memberikan pelimpahan beberapa kewenangan pelayanan publik kepada Pemda, juga memberikan keleluasaan kepada Pemda untuk mengatur kebijakan fiskalnya sendiri. Salah satu kewenangan yang juga telah menjadi tanggung jawab Pemda adalah masalah pendidikan. Dorongan berbagai pihak membuat pemerintah lebih serius lagi dalam meningkatkan komitmennya untuk memajukan pendidikan. Terbatasnya sumber keuangan daerah membuat pemerintah daerah harus lebih hati - hati dalam membuat prioritas kebijakan dan hal tersebut memunculkan indikasi bahwa peningkatan anggaran pendidikan akan mengurangi ketersediaan anggaran untuk sektor yang lain. Sistem demokrasi yang dianut negara kita mewakilkan aspirasi yang dimiliki oleh masyarakat kepada DPR dan DPRD untuk tingkat daerah. Penelitian ini melakukan analisis pada level kab/kota sebagai sentral pelaksanaan desentralisasi memalui otonomi daerah dengan observasi sebanyak 337 kab/kota dari periode 2001-2005. Metode yang digunakan adalah data panel dengan random effect yang diolah dengan Software Stata 10.0. Hasil estimasi menunjukkan bahwa dalam model jangka pendek yang digunakan dalam tesis ini memang terjadi crowding out. Kondisi kedua adalah bahwa ternyata partai yang pro pendidikan adalah Golkar, Partai Keadilan, Partai Persatuan Pembangunan (PPP) dan Partai Kebangkitan Bangsa (PKB). Hasil selanjutnya juga menunjukkan bahwa daerah di Jawa mengalokasikan anggaran pendidikan lebih banyak dibanding daerah non Jawa, kemudian daerah yang memiliki kekayaan alam (migas) juga mengalokasikan anggaran pendidikan lebih tinggi disbanding daerah tanpa migas.

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The Focus of this study is about crowding out effect and public choice mechanism in determination of education expenditures of local government. Education spending has risen significantly over three last decades. Indonesia 2001’s decentralization is rapidly moving the country from one of the most centralized System in the world to one of the most decentralized. The country has embarked on a program of fiscal, administrative and political decentralization at the same time. It has been asserted that larger education expenditures have caused local governments to spend less on other types of government Services. Using panel of districts-level data for the period 2001-2005, this study provides a test of the hypothesis that education spending has crowded out other types of spending and try to find out which party in Indonesia that have preference in education. The results indicate that,for the period studied, there is evidence that increased local govemment education expenditures resulted in lower levels of speding on other categories of local government provided good and Services. Only four parties that pro education are Golkar,Partai Keadilan,Partai Persatuan Pembangunan(PPP) and Partai Kebangkitan Bangsa (PKB). Other results showed that districts located in Java spend higher education expenditures than out of Java and districts with natural resource revenue shares have higher education expenditures as well."

"The main purpose of this study is to find the effect of budget deficit with foreign loans as source of funding on inflation and economic growth. This study focuses on transmission mechanism of budget deficit funding effects on inflation and economic growth. We use a specific simultaneous macroeconomic model which includes 17 behavioral equations and 18 identity equations with 6 blocks in this study, Two Stage Least Square (TSLS) method is employed to estimate the behavioral equations in the model. This study use Indonesia secondary economic data from 1970 to 2003. Econometric tests are performed to produce BLUE estimator. This study also use stochastic simulation with 10000 replications to simulate policy.The results show that using foreign loan to fund budget deficit increases both economic growth and inflation. This result is also supported by the simulation results which show that increase in the proceeds of new foreign loan increases reserves which in turn increase primary money/money supply/monetary base. Interaction of monetary base with money multiplier then increases price level. increase in capital in flow from increase in foreign loan increases government spending which also increases government spending increases in the government spending then add to government capital stock so that economic growth also increases."

"AbstractThis study aims to determine the relationship between local government spending, agricultural productivity, and poverty in Indonesia for the period of 2005-2008. Using econometric models of the panel and panelsimultaneous, this study find the evidence that local government spending on infrastructure and education significantly affect agricultural productivity and poverty. The study also found that the value of multiplier effect of local government spending on poverty, roads is the largest, followed by education (the literacy rate) and irrigation."

"AbstractSalah satu aspek penting dari kebijakan desentralisasi skal adalah pelimpahan wewenang dan tanggungjawab pengelolaan dana publik ke pemerintah daerah, khususnya kota/kabupaten. Sesudah lebih dari sepu-luh tahun diimplementasikan, ketersediaan informasi dan data memungkinkan untuk melakukan evaluasisejauh mana dampaknya pada pembangunan ekonomi regional. Studi ini ingin mengetahui apakah kinerjapengelolaan keuangan daerah cukup efektif dalam penyediaan infrastruktur dasar dan apakah penyediaaninfrastruktur dasar secara efektif mengurangi angka kemiskinan. Dengan menggunakan metode data panel,studi ini mengonrmasi hubungan positif antara kinerja pengelolaan keuangan daerah dengan penyediaaninfrastruktur dasar (khususnya jalan dan listrik, namun tidak berlaku untuk air bersih). Adapun hubunganantara penyediaan infrastruktur dasar dengan angka kemiskinan, sesuai harapan, ternyata negatif. Temuanini memperkuat keyakinan perlunya mendorong lebih kuat lagi pembangunan infrastruktur dasar untukmengurangi angka kemiskinan."

"The main purpose of this research is to investigate the factors influencing the labor supply on the non-agricultural activities and the of income from non-agricultural activities to the structure and distribution of farmer household income.To reach the goals, three models are developed. The first and second models are labor supply models of husband and wife, respectively. For both models, the dependent variables are labor supplies proxied by work-hours of non-agricultural activities per year. While the independent variables for both models are area of land used, wage level in non-agricultural, age, number of household member with age above and below 5 years, number of working household members, and location of the household. The third model is a model with contribution of non-agricultural income as its dependent variable, while its independent variable is area of land used. The data source for this research istaken from a primary survey, while the secondary data gathered BPS in Gunung Kidul.The study shows that husband labor supply on non-agricultural activities is affected by the area of land used, wage level, education level, number of household members, and household location. But, education level and number of working household members are not giving significant influence to husband labor supply on non agricultural sectors. Furthermore, wife labor supply is influenced by the area of land used, wage level, age, education level, number of household members with age below 5 years, and household location. In the contrary, number of household members of age over 5 years and number of working household members aren 't seem to have significant effect on wife labor supply model on non agricultural activities."

"AbstractUrban Household Energy Consumption Analysis in Indonesia: Period of 2008 and 2011The goal of the study is to analyze the pattern and the change of urban household energy consumption and their determinant factors in Indonesia period of 2008 and 2011 using SUSENAS data of household budget survey. The concept of energy ladder and fuel stacking (multi fuel) are used to make a model of household energy consumption. The result of study shows that total energy consumption was increase in the period of 2008 and 2011. Coefficient of income elasticity toward both of modern and traditional energy consumption are positive, it means that there is rising consumption of energy along with the rising income. Household income is the main determinant factor of energy used by household besides other non-economic factors.AbstrakPenelitian ini bertujuan untuk menganalisis pola dan perubahan konsumsi energi rumah tangga daerah perkotaan di Indonesia serta faktor-faktor yang memengaruhinya tahun 2008 dan 2011 dengan memanfaatkan data hasil survei pengeluaran rumah tangga SUSENAS. Konsep energy ladder dan fuel stacking (multi-fuel) diaplikasikan untuk membuat model konsumsi energi rumah tangga. Hasil penelitian memperlihatkan bahwa konsumsi energi (total), modern, dan tradisional rumah tangga perkotaan mengalami kenaikan pada periode tahun 2008 dan 2011. Koefisien elastisitas pendapatan terhadap konsumsi energi modern dan tradisional bernilai positif, yang berarti bahwa terjadi peningkatan konsumsi energi modern dan tradisional sejalan dengan peningkatan pendapatan. Pendapatan rumah tangga adalah faktor yang paling menentukan konsumsi energi rumah tangga di samping faktor non-ekonomi lainnya seperti luas lantai rumah dan jumlah anggota rumah tangga."

"AbstractThis study aims to test whether the behavior of Indonesian people in determining education is the manifestation of human capital theory or signaling theory. Using the ordinary least square (OLS) model and the Indonesian Family Life Survey (IFLS) 2007 data, we nd that both theories mutually have eect to in uence the behavior of Indonesian people to determine their education.AbstrakStudi ini bertujuan untuk menguji apakah perilaku masyarakat Indonesia dalam memandang pendidikan merupakan perwujudan dari teori human capital ataukah teori signaling. Dengan menggunakan model Ordinary Least Square (OLS) dan data Indonesia Family Life Survey (IFLS) tahun 2007, penulis menemukan bahwa kedua teori tersebut mempunyai pengaruh yang sama dalam memengaruhi perilaku masyarakat Indonesia dalam menempuh pendidikan."