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Electoral accountability, fiscal decentralization and service delivery in Indonesia

Emmanuel Skoufias, Ambar Narayan, Basab Dasgupta () and Kai Kaiser ()

No 5614, Policy Research Working Paper Series from The World Bank

Abstract: This paper takes advantage of the exogenous phasing of direct elections in districts and applies the double difference estimator to: (i) measure impacts on the pattern of public spending and revenue generation at the district level; and (ii) investigate the heterogeneity of the impacts on public spending. The authors confirm that the electoral reforms had positive effects on district expenditures and these effects were mainly due to the increases in expenditures in the districts outside Java and Bali and the changes in expenditures brought about by non-incumbents elected in the districts. Electoral reforms also led to higher revenue generation from own sources and to higher budget surplus. Finally, the analysis finds that in anticipation of the forthcoming direct elections, district governments tend to have higher current expenditures on public works.

Keywords: Subnational Economic Development; Public Sector Expenditure Policy; Parliamentary Government; E-Government; Debt Markets (search for similar items in EconPapers)
Date: 2011-03-01
New Economics Papers: this item is included in nep-dev, nep-pbe and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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