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"AbstractThis study aims to test whether the behavior of Indonesian people in determining education is the manifestation of human capital theory or signaling theory. Using the ordinary least square (OLS) model and the Indonesian Family Life Survey (IFLS) 2007 data, we nd that both theories mutually have eect to in uence the behavior of Indonesian people to determine their education.AbstrakStudi ini bertujuan untuk menguji apakah perilaku masyarakat Indonesia dalam memandang pendidikan merupakan perwujudan dari teori human capital ataukah teori signaling. Dengan menggunakan model Ordinary Least Square (OLS) dan data Indonesia Family Life Survey (IFLS) tahun 2007, penulis menemukan bahwa kedua teori tersebut mempunyai pengaruh yang sama dalam memengaruhi perilaku masyarakat Indonesia dalam menempuh pendidikan."

"AbstractAbstractThis research identified and analyzed school participation of children in Indonesia from 7 to 15 years old. Using data collected by Survey Sosial Ekonomi Nasional (SUSENAS) in 2012, probit model estimates that there are more probabilities in boys rather that girls to leave their education. As well as living environtment supported, citizen have more well educated children than villagers. Elementary schools had been highly needed to full school supply so that out-of-school-children level will drop as low as possible. But an increase in junior high school supplied will not turned out as it applied on elementary schools.AbstrakStudi ini mengidentifikasi dan menganalisis karakteristik partisipasi sekolah anak-anak di Indonesia pada jenjang usia 7 sampai 15 tahun. Dengan menggunakan data Survei Sosial Ekonomi Nasional (SUSENAS) tahun 2012, hasil estimasi model probit menunjukkan bahwa anak laki-laki di Indonesia memiliki peluang lebih besar menjadi out-of-school children (oosc). Begitu pula dengan peluang anak-anak yang tinggal di pedesaan, yang lebih besar menjadi oosc dibandingkan dengan anak-anak yang tinggal di perkotaan. Ketersediaan sekolah sangat diperlukan pada tingkat sekolah dasar untuk mengurangi oosc. Namun, pada tingkat sekolah menengah pertama penambahan jumlah sekolah tampaknya bukanlah pilihan tepat."

"AbstractIndonesia has been still experiencing regional economic disparity problems, including in labour productivity. This study employs dynamic panel approach to analyze convergence and to identify determinants of regional labour productivity during the period of 1987-2011. The System Generalized Method of Moments (Sys-GMM) estimation results show that regional convergence process occurs with speed of convergence of 0.06518 per year. Physical capital stock, human capital stock, total trade, and real wage give positive impacts. Therefore, government should prioritize in overcoming labour productivity disparity in Eastern Indonesia in which are more unequal than in Western Indonesia where interventions should be greater for provinces with lower labour productivity.AbstrakIndonesia masih mengalami masalah terkait dengan disparitas perekonomian regional, termasuk dalam hal produktivitas tenaga kerja. Studi ini menggunakan pendekatan panel dinamis untuk menganalisis konvergensi dan mengidentikasi determinan produktivitas tenaga kerja regional selama periode 1987-2011. Model estimasi System Generalized Method of Moments (Sys-GMM) menunjukkan bahwa proses konvergensi regional terjadi dengan kecepatan konvergensi 0,06518 per tahun. Stok modal fisik, stok modal manusia, total perdagangan, dan upah riil ditemukan memberikan pengaruh positif. Pemerintah harus lebih memprioritaskan untuk mengatasi masalah disparitas produktivitas tenaga kerja di Kawasan Timur Indonesia (KTI) yang lebih timpang dibandingkan Kawasan Barat Indonesia (KBI) di mana intervensi harus lebih fokus terhadap provinsi-provinsi dengan tingkat produktivitas tenaga kerja yang lebih rendah."

"The Focus of this study is crowdi.ng out effect and public choice mechanism i.n determination of education expenditures of local government. Education spending has risen significantly over three last decades. Indonesia 2001's decentralization is rapidly moving the country from one of the most centralized system in the world to one of the most decenualized. The country has embarked on a program of fiscal, administrative and political decenu-alization at the same time. It has been asserted that larger education expenditures have caused local governments to spend less on other types of government services. Using panel of districts-level data for the period of 2001-2005, this study provides a test of the hypothesis that education spending has crowded out other types of spending and ties to find out which party in Indonesia that have preference in education. The results indicate that,for the period studied, there is evidence that i.ncreased local government education expenditures resulted in lower levels of speding on other categories of local government provided good and services. Only four parties that pro education are Golkar,Partai Keadi1an,Partai Persatuan Pembangunan(PPP) and Partai Kebangkitan Bangsa (PKB). Other results showed that districts located in Java spend higher education expenditures than out of Java and districts with natural resource revenue shares have higher education expenditures as well."

"As the result of global financial liberalization there is a tendency for increasing number of portfolio INVESTMENT which in turn dominates the domestic financial market. This study aims to elaborate the effect of shortterm portfolio investment flows to the exchange rate. Using the method of Vector Auto Regressive (VAR), this study employs quarterly data from 1997 to 2007.The result shows that both real and nominal exchange rates are affected by the short-term portfolio investment flows dominantly. In particular the short-term portfolio investment inflows strengthen the local currency. Secondly, in other direction short-term portfolio investment flows also affected by both real and nominal exchange rate. Thirdly, the impact of shortterm portfolio investment flows to change of nominal exchange rate is temporarily due to adjustment toward equilibrium, but not for real exchange rate."

"Tujuan desentralisasi fiskal di Indonesia adalah untuk mengurangi kesenjangan pembangunan. Terkait dengan pembangunan pendidikan, salah satu masalah krusial adalah kesenjangan akses. Menggunakan data dari 440 database kabupaten kota selama 2005-2009, studi ini bertujuan untuk menganalisis dampak desentralisasi fiskal dalam mengurangi disparitas akses pendidikan dasar. Dengan menggunakan fixed-effect model, hasilnya menunjukkan bahwa Dana Alokasi Khusus (DAK) Pendidikan, DAK Non-Pendidikan, dan Pendapatan Asli Daerah (PAD) memiliki dampak yang signikan dalam mengurangi disparitas akses pendidikan bersama dengan karakteristik kekayaan dan regional. Berbagai upaya tetap perlu dilakukan untuk mengoptimalkan pemerataan akses pendidikan termasuk penguatan peran pemerintah provinsi dalam alokasi dan distribusi sumber daya pelayanan pendidikan dasar.

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The objective of fiscal decentralization objective in Indonesia is to reduce development disparities. Regarding education development, one crucial issue is access disparity. Using 440 sub provincial database during 2005-2009, this study is aim to analyze the impact of fiscal decentralization in reducing disparity of primary education access. Using fixed-effect model, the result showed that Dana Alokasi Khusus (DAK) for Education, DAK Non Education, and Pendapatan Asli Daerah (PAD) have significant impact in reducing education access disparity along with the wealth and regional characteristics. Nonetheless efforts need to be done to optimize the equalization of education access including strengthening the provincial government role in resources allocation and distribution of basic education services."

"This study tries to measure the optimum size of regional government (municipality/city) which will support the accomplishment of decentralization policy ?s objectives. The result of this study will conclude how the reformation pattern toward regional government in Indonesia should be done. The result of regressing translog and quadratic functions using cost per capita minimalization approach shows the existence of economy of scale from the size of municipality/city?s population. Using maximization approach, ¡t is also shown that Municipality/city government expenditure ¡s not efficient yet and has not supported the efforts to accomplish the desired development performance. With various regulations, the significant variable used in the measurement of optimum size is the number of population.The result of using minimization and maximization approaches show that the optimum size for municipality/city is not single (differ), between municipality and city, among each kind of per capita expenditure, and across tìme. Generally, the optimum and minimum size of population for municipality/city such that per capita expenditure can be minimized and such that Regional GDP per capita increases are approximately two million people. The reality of municipality/city?s size which in general is relatively small compared to the optimum and minimum measurement shows the inefficiency of municipality/city government expenditure, and its ineffectiveness to support the effort to enhance the welfare of society. Hence, territoty extension policy performed this far, is actually worsen the accomplishment of its main objective on conducting regional government and development."

"In the year 2002, Y. V Reddy introduced a new thought in monetary economics theory, especially about transmission mechanism of monetary policy. Reddy classified the channeIs of transmission mechanism into three types, there are quantum channel, interest rate channel, and asset price channel. Quantum channel consists of two channels, there are money channel and credit channel. This research will examine the differences between money channel and credit channeI, the factors which affect volume of money supply (M2) and credit, the stability of quantum channel, and also effectiveness of quantum channel, especially related on its role to push the economic growth. This research uses a monthly data from the year 1993 until 2005. The analysis of this research divided into three parts of period, pre-crisis period (1993-1996), crisis period (19972OO1), and post-crisis period (2002-2005). In the precrisis period, credit channel more stable in transmission mechanism of monetary policy and more effective to push the economic growth. In the crisis, quantum channel did not effective to push economic growth. In the post-crisis period quantum channel also did not effective to push the economic growth."

"The main purpose of this study is to find the effect of budget deficit with foreign loans as source of funding on inflation and economic growth. This study focuses on transmission mechanism of budget deficit funding effects on inflation and economic growth. We use a specific simultaneous macroeconomic model which includes 17 behavioral equations and 18 identity equations with 6 blocks in this study, Two Stage Least Square (TSLS) method is employed to estimate the behavioral equations in the model. This study use Indonesia secondary economic data from 1970 to 2003. Econometric tests are performed to produce BLUE estimator. This study also use stochastic simulation with 10000 replications to simulate policy.The results show that using foreign loan to fund budget deficit increases both economic growth and inflation. This result is also supported by the simulation results which show that increase in the proceeds of new foreign loan increases reserves which in turn increase primary money/money supply/monetary base. Interaction of monetary base with money multiplier then increases price level. increase in capital in flow from increase in foreign loan increases government spending which also increases government spending increases in the government spending then add to government capital stock so that economic growth also increases."