Administrative overspending in Indonesian districts: The role of local politics

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.

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Year of publication:	2013
Authors:	Suharnoko Sjahrir, Bambang ; Kis-Katos, Krisztina ; Schulze, Günther G.
Publisher:	Freiburg i. Br. : University of Freiburg, Department of International Economic Policy (iep)
Subject:	administrative expenditures \| decentralization \| direct elections \| Indonesia

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Series:	Discussion Paper Series ; 24
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	769386946 [GVK] hdl:10419/86177 [Handle] RePEc:fre:wpaper:24 [RePEc]
Classification:	D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption ; H76 - State and Local Government: Other Expenditure Categories ; H11 - Structure, Scope, and Performance of Government ; R51 - Finance in Urban and Rural Economies
Source:	EconStor

Persistent link: https://www.econbiz.de/10010325140