Review of Indonesian Economic and Business Studies
Vol 6, No 2 (2015): Review of Indonesian Economics and Business Studies

Efficiency Analysis of Local Government Spending of Regencies and Cities in West Java, 2001-2010

Sihaloho, Estro Dariatno (Unknown)



Article Info

Publish Date
13 Mar 2018

Abstract

This paper has two objectives. The frst is to estimate technical effciency scores for local government expenditure in regencies and cities in West Java. The second is to analyze the other environmental factors that play animportant role in the technical effciency scores of local government expenditure in the same regencies and cities.This research uses a Data Envelopment Analysis (DEA) method to estimate technical effciency scores and usesa Tobit method for analyzing environmental factors. The DEA method uses capital expenditure per capita,employment of government expenditure per capita, and goods and services expenditure per capita as input anduses Gross Regional Product (GRP) per capita, human capital index (HDI) and road infrastructure length perwide area as output. The Tobit method uses the total of investment credit funds, total labor and total governmentemployment per 1000 civil servants. The results showed that there are many region that have high spendingbut can not achieved the maximum score of effciency. The Tobit estimation shows that the total of investmentcredit funding and total labor have positive and signifcant marginal effects in creating optimal technical effciencyscores. Total government employment per 1000 civil servants has a negative and insignifcant marginal effect onoptimal technical effciency scores.

Copyrights © 2015






Journal Info

Abbrev

riebs

Publisher

Subject

Economics, Econometrics & Finance

Description

RIEBS Journal is a scientific journal published by the Economic Research Center-Indonesian Institute of Sciences (Pusat Penelitian Ekonomi-Lembaga Ilmu Pengetahuan Indonesia/P2E-LIPI) twice a year, with e-ISSN: 2502244X and p-ISSN: 20871392. RIEBS Journal publishes original articles on the most ...