The Effect of Accountability on the Efficiency of Local Government Expenditures

This study aims to examine the effect of accountability, as one governance aspects, on efficiency local government spending at district/city level in Indonesia. uses panel data analysis with 228 districts/city entities from 2014 2018. The is conducted two stages; first stage measures every by using Data Envelopment Analysis (DEA) method. second estimates accountability and other control variables expenditure regression Tobit result shows a non-linear relation between which proxied Indonesia Audit Board Opinion Index, expenditure. Initially, will proceed hand increasing efficiency; however, certain point, an increase no longer Another variable that positively relates population per capita. Meanwhile, ethnic fractionalization index (EFI) distance negatively affect efficiency. results this have not been able show political competition gender regional heads