ABSTRAK Penelitian ini bertujuan untuk melihat pengaruh transfer tidak bersyarat,pendapatan asli daerah, produk domestik regional bruto dan jumlah pendudukterhadap pengeluaran pemerintah kabupaten/kota di Provinsi Jambi selamaimplementasi desentralisasi fiskal. Berdasarkan spesifikasi model pengeluaranpemerintah daerah, keberadaan flypaper effect dideteksi dengan membandingkankoefisien regresi transfer tidak bersyarat dan pendapatan asli daerah menggunakanpendekatan ekonometrika model data panel untuk 10 kabupaten/kota di ProvinsiJambi selama 2001-2008. Hasil estimasi model fixed effect menunjukkan transfertidak bersyarat, PAD, PDRB berpengaruh signifikan terhadap pengeluaranpemerintah kabupaten/kota, sedangkan variabel jumlah penduduk memberikanhasil yang sebaliknya. Selanjutnya hasil perbandingan koefesien regresi transfertidak bersyarat dengan pendapatan asli daerah memberikan kesimpulan adanyaflypaper effect pada pengeluaran pemerintah daerah di Provinsi Jambi ABSTRACT This research is intended to know the influence of unconditional grants, localrevenue, local GDP and the size of population on local government’s expenditurein Jambi Province for the implementation of fiscal decentralization. Based on thelocal government’s expenditure model specification, the existence of flypapereffect was detected by comparing the regression coefficients of unconditionalgrants and local revenue using econometric approach of panel data model from 10districts/municipality in Jambi Province during 2001 to 2008. The result of fixedeffect model estimation show that unconditional grants, local revenue, local GDPsignificantly affect on expenditure of government’s districts/municipalitygovernment’s expenditure, while the variable of population has not significantaffecting on local government’s expenditure. In addition, the comparison of theregression coefficients of unconditional grants and local revenue indicates theexistence of flypaper effect on the districts/municipality government’sexpenditure in the Province of Jambi during the period |