INTERDEPENDENCE ANALYSIS ON GOVERNMENT INCOME AND GOVERNMENT EXPENDITURE IN INDONESIA

Rahmadana, Muhammad Fitri and Naibaho, Marlon (2014) INTERDEPENDENCE ANALYSIS ON GOVERNMENT INCOME AND GOVERNMENT EXPENDITURE IN INDONESIA. International Journal of Management, Accounting and Economics, 1 (1). pp. 1-9. ISSN 2383-2126

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Abstract

This research reviewed interdependence analysis on government income and expenditure in Indonesia, where the problem shown up here was government expenditure was always bigger than government income, though in particular years the income was bigger than government expenditure. This research aimed to view the pattern or a certain causality direction between government income and expenditure; the variables that would be tested were government income and expenditure. The data used was the time series data in the period of 1988 - 2011, the data source was obtained from Statistics Central Bureau of Indonesia. The method used was Granger Causality. The research result showed that government income (GI) and govemment expenditure (GE) was not stationary on its base data but on tl1e first derivative. Between government income and expenditure had unidirectional causality, which was both of those variables, got a long-term correlation and both bad a quick adaptation for that Govenunent expenditure would be able to effect govemmcnt income five years after government expenditure was allocated.

Item Type: Article
Keywords: Government Income; Government Expenditure; Granger Causality
Subjects: H Social Sciences > HG Finance > HG8011 Insurance > HG8751 Life insurance > HG8901 Government policy. State supervision HG8941-9200.5 By region or country
H Social Sciences > HJ Public Finance
Divisions: Fakultas Ekonomi > Pendidikan Ekonomi
Depositing User: Mrs Gusti Lisa Utami
Date Deposited: 25 Jul 2018 01:37
URI: http://digilib.unimed.ac.id/id/eprint/30755

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