This study aims to analyze the management of the Specific Allocation Fund (DAK). The three largest DAK-recipient sectors are the focus of the study : education, health, and roads infrastructure. The study sample areas are four districts. This paper was compiled based on the results of in-depth...

This study investigates regional and ethnic inequality in Indonesia from five dimensions : access to education and health facilities, education outcome, health outcome, voice, as well as income and consumption. We believe this is the first comprehensive study that looks at ethnic inequality in...

In a fast urbanizing Indonesia, the rural sector still plays an important role in the countrys economy. Although declining, the majority of the population still live and find employment in rural areas. However, rural areas lag behind urban areas in many aspects. As a result, around 80% of all...

I analyze the effects of an increase in government purchases financed entirely through seignorage, in both a classical and a New Keynesian framework, and compare them with those resulting from a more conventional debt-financed stimulus. My findings point to the importance of nominal rigidities...

Recent evidence on the effect of government spending shocks on consumption cannot be easily reconciled with existing optimizing business cycle models. We extend the standard New Keynesian model to allow for the presence of rule-of-thumb (non-Ricardian) consumers. We show how the interaction of...

We lay out a tractable model for fiscal and monetary policy analysis in a currency union, and analyze its implications for the optimal design of such policies. Monetary policy is conducted by a common central bank, which sets the interest rate for the union as a whole. Fiscal policy is...