Do Financial Deepening, Government Spending, and Unemployment Benefit Poverty Reduction in Indonesia?

Public Spending for Poverty Reduction

The Effect of Budget Deficit Shock on Government Spending: An Empirical Case in Indonesia

This paper aims to investigate the effect of budget deficit shock on government spending in Indonesia. For this propose, this reasearch uses an alternative error correction model based on loss function of government spending. The model assumes the short run disequilibrium, in which shock variables may play an important role. A spesific loss function model is applied to develop the long run gove...

Local Government Capability and Public Spending Efficacy: Evidence from a Decentralized Government Transfer Program in Indonesia

This paper investigates the association between pre-existing local government capability and the size of grants from the central government that is actually delivered to intended beneficiaries by the local government. Combining administrative data and household survey datasets, we show that only 78 percent of the grants under the Inpres Desa Tertinggal (IDT)–Indonesia’s poverty alleviation prog...

Government Spending Multiplier in a Model with Financial Friction

During the recent financial crisis, huge fiscal stimulus packages were initiated and bold actions were taken by monetary authorities in many countries. Inspired by these, I explore the impact of fiscal stimulus when I take financial friction and liquidity trap into account. In particular, I investigate the fiscal multiplier in a dynamic stochastic general equilibrium model which is featured wit...

Unemployment Traps: Do Financial Dis-incentives matter?

This paper analyses the importance of financial dis-incentives for workers in Denmark. Based on a panel survey which is merged to a number of administrative registers it is possible to calculate precise measures of the economic incentives for labour force participants between employment in a full time job and being on unemployment insurance benefits and considering also the fixed costs of work....