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Understanding intra-household expenditure distribution in Indonesia

Author

Listed:
  • Heru Wibowo

    (Departemen Keuangan Republik Indonesia)

Abstract

Decentralisation provides regional government with greater authority to deliver various public services. It is expected that decentralisation will improve people welfare due to proximity. This study is aimed to investigate whether there is improvement in welfare, as represented by converging household expenditure, during pre and post decentralisation. It is tested employing Indonesian Family Life Surve (IFLS) database and nonparametric approaches. The findings suggest a converging household expenditure, decreasing gap between the poor and rich, and higher probability of the poor to move to higher expenditure groups, particularly for those who live in urban areas.

Suggested Citation

  • Heru Wibowo, 2012. "Understanding intra-household expenditure distribution in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(2), pages 97-114, April.
    • Handle: RePEc:uii:journl:v:4:y:2012:i:2:p:97-114
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    References listed on IDEAS

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    More about this item

    Keywords

    fiscal decentralisation; expenditure convergence; Indonesia;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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