Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/86177 
Year of Publication: 
2013
Series/Report no.: 
Discussion Paper Series No. 24
Publisher: 
University of Freiburg, Department of International Economic Policy (iep), Freiburg i. Br.
Abstract: 
We analyze the determinants of the excessive administrative spending of local governments in Indonesia. In an unbalanced panel data set of 399 districts for 2001-2009, we show that the proliferation of districts has not led to increased administrative spending; instead a lack of political accountability is responsible for this excess. The degree of political competition influences the level of administrative spending significantly; newly introduced direct elections of district heads, however, did not curtail the waste.
Subjects: 
administrative expenditures
decentralization
direct elections
Indonesia
JEL: 
D73
H76
H11
R51
Document Type: 
Working Paper

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