scholarly journals ANALISIS DETERMINAN PENGELUARAN KONSUMSI MAKRO RUMAH TANGGA DI INDONESIA

2014 ◽  
Vol 3 (2) ◽  
Author(s):  
Puspi Eko Wiranthi
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
National Income ◽  
Household Consumption ◽  
Consumption Expenditure ◽  
Fuel Prices ◽  
The Government ◽  
Negative Impacts ◽  
The Stability ◽  
Household Incomes

Domination allocation of Gross Domestic Product by its use in household consumption expenditure showed the importance of this type of expenditure to national economic growth and the household welfare. Under these conditions, this study aims to analyze the development of household consumption expenditure in Indonesia during the period 2000 to 2014 and the factors that influence the household consumption expenditure. By using multiple linear regressions, the study finds that the factors of national income, interest rates and fuel prices significantly affect national household consumption expenditure. To further boost economic growth and welfare, the government should imply appropriate policies by increasing household incomes through the expansion of employment opportunities, as well as maintaining the stability of interest rates and minimizing the negative impacts of the rising of oil prices.DOI:10.15408/sjie.v3i2.2063 

Money and Household Consumption Expenditure in Developing Asia: Some Panel ARDL Evidence

2021 ◽  
pp. 001946622110624
Author(s):  
Ghanashyama Mahanty ◽  
Himanshu Sekhar Rout ◽  
Swayam Prava Mishra
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Household Consumption ◽  
Asia Pacific ◽  
Consumption Expenditure ◽  
Data Set ◽  
Final Consumption ◽  
Long Run ◽  
Short Run

The role of money in influencing real economic activities has been a long-standing debate in macroeconomics. As per the Keynesian theory, household consumption expenditure plays a significant role in promoting economic growth. Given the rapid consumption-led growth pattern in the emerging Asia Pacific region, in this article, we attempt to assess the role of money in influencing household consumption expenditure, which propels economic growth. We employ a panel data set from 2005–2018 for 10 emerging Asian economies, covering Bangladesh, Cambodia, India, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam. Given the region’s heterogeneous nature, we employ a variant of the popular St Louise equation model with autoregressive distributed lag model (ARDL) panel framework based on pooled mean group (PMG) and dynamic fixed effect (DFE) models developed by Pesaran and Shin to study the underlying relationships. Both PMG and DFE models suggest a strong positive relationship between money and household consumption expenditure both in the long run and short run. After allowing for control variables such as government final consumption expenditure and interest rate, the relationships continue to hold steady. Further, the relationship holds true across both narrow (M1) and broad money (M3) measures. The government final consumption expenditure and interest rates do not have influence on household consumption expenditure in the long run, but they have an influence in the short run. JEL Codes: C23, O16, O47, E51, E31, E21

scholarly journals Analysis of the Viability of Fiscal and Monetary Policies on the Recovery of Household Consumption Expenditures Because of the Covid-19 Pandemic

2021 ◽  
Vol 3 (1) ◽  
Author(s):  
Fahrul Riza ◽  
William Wiriyanata
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Government Spending ◽  
Positive Impact ◽  
Household Consumption ◽  
Series Data ◽  
Consumption Expenditure ◽  
Consumption Expenditures ◽  
Long Run ◽  
The Government

The Covid-19 outbreak disrupted economic activity in almost all countries. The Indonesian economy entered a recession phase as a result of the continued contraction in economic growth in the second and third quarters of 2020. According to Keynesian economic theory, the combination of fiscal policy and monetary policy was more effective in recovering the economy from the crisis, this study aims to measure the effect of government spending, money supply, inflation and interest rates on aggregate household consumption expenditure. This study used a quantitative method, using monthly time series data from January 2015 to December 2020. The data were analyzed using the Vector Error Correction Model (VECM). The results show that government spending has a negative impact on household aggregate expenditure in the long run meanwhile interest rate has a positive impact on household consumption expenditure. Inflation do not affect aggregate household consumption expenditure, both in the short and long term. The results of the analysis are useful for evaluating the policies taken by the government to overcome the economic crisis due to the spread of the Covid-19 outbreak. The government increases aggregate expenditure to cover the decline in household aggregate consumption expenditure due to a decrease in household real income. Then expansionary monetary policy in the long run will increase aggregate demand. Therefore, the Ministry of Finance together with Bank Indonesia needs to design other policies that will have a positive impact on economic recovery in the short term. This study has not included other macro indicators that affect household consumption expenditures such as unemployment, taxes and the household marginal propensity to saving (MPS). Keywords: Household Aggregate Expenditure; Government Expenditure; Inflation; VECM

scholarly journals Dampak Covid-19 Terhadap Perekonomian Indonesia Dari Sisi Pendapatan Nasional Pendekatan Pengeluaran

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Ilham Tri Murdo ◽  
Junaidi Affan
Keyword(s):  
Economic Growth ◽  
National Income ◽  
Consumption Expenditure ◽  
Government Consumption ◽  
Investment Expenditure ◽  
Goods And Services ◽  
Fixed Capital Formation ◽  
Long Time ◽  
The Government ◽  
The Impact

This study aims to determine the extent of the impact of Covid-19 on the Indonesian economy in terms of national income, which is calculated based on the expenditure method with components of household consumption, gross investment, expenditure and net exports, and future predictions, if the Covid-19 pandemic will continue in the future. long time. From the expenditure side, economic growth in quarter II-2020 compared to quarter II-2019 (y-on-y) contracted in all components. The deepest contraction occurred in the Export of Goods and Services Component of 11.66 percent, followed by the Gross Fixed Capital Formation Component with a contraction of 8.61 percent. The growth in the component of the LNPRT Consumption Expenditure contracted by 7.76 percent, and the growth in the Government Consumption Expenditure component contracted by 6.90 percent. When compared with the previous quarter (q-to-q), economic growth from the expenditure side contracted in all components except for the Government Consumption Component, which grew by 22.32 percent. This is due to an increase in spending on social assistance, especially for the response to the Covid-19 pandemic. The component that experienced the deepest contraction occurred in exports of goods and services amounting to 12.81 percent. Meanwhile, imports of goods and services as a subtracting component decreased by 14.16 percent.

INVESTMENT CREDIT ANALYSIS BY ECONOMIC SECTOR IN INDONESIA

2021 ◽  
Vol 9 (1) ◽  
pp. 1-10
Author(s):  
Ardi Afrizal ◽  
Nurdin Nurdin ◽  
Abd Halim
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Economic Sector ◽  
Simple Linear Regression ◽  
Formal Employment ◽  
Research Findings ◽  
The Government ◽  
The Stability ◽  
Credit Analysis

The purpose of this study is to analyze investment credit by economic sector in Indonesia through a simple linear regression model through the Least Squares (NLS and ARMA) approach. The findings show that the effect of interest rates on investment credit is not significant 0.334 with a R2 value of 1.06%. Meanwhile, the effect of inflation on investment credit is very significant 0.0021 with R2 of 10.31 %%. Then for the effect of investment credit on economic growth is not significant 0.654 or with an R2 value of 0.0023. Meanwhile, the effect of investment credit on formal employment is very significant 0.0033 with a R2 value of 9.5%. The results of the research findings recommend an evaluation of monetary policy carried out by the government, especially the stability of interest rates on investment credit and economic growth in Indonesia.

Australian central bank holds rate as growth slips

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Central Bank ◽  
Interest Rates ◽  
Labour Markets ◽  
Content Type ◽  
Commercial Lenders ◽  
The Government ◽  
Roll Out ◽  
Growth Forecasts

Significance The RBA has cut its growth forecasts amid rising job losses, weakening demand and increasing signs that the latest COVID-19 lockdowns will continue to slow the economy until the pace of the vaccine roll-out programme can be increased. Impacts Although the RBA is independent, the government will hope it keeps rates low ahead of the elections due next year. Commercial lenders could raise interest rates independently of the RBA if inflation remains high. Wage pressures will re-emerge as labour markets tighten but may be mitigated by the extent of underemployment. Economic growth will be uneven across the country in coming months as pandemic-related restrictions vary by location.

scholarly journals Economic Growth, Policies and Influencing Factors: The Case of Albania

2016 ◽  
Vol 4 (1) ◽  
pp. 107
Author(s):  
Eleni Vangjeli ◽  
Anila Mancka
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Empirical Analysis ◽  
Influencing Factors ◽  
Fiscal Policies ◽  
The Government ◽  
High Level ◽  
The Empirical Analysis

Monetary and fiscal policies are two policies that the government could use to keep a high level of growth, with a low inflancion. Fiscal policy has its initial impact on the stock market, while monetary policy in market assets. But, given that the goods and active markets are closely interrelated, both policies, monetary as well as fiscal have impact on the economy, increasing the level of product through the reduction of interest rates. In our paper we will show how functioning monetary and fiscal policies. But also in our paper we will analyze the different factors which have affected the economic growth of the country. The focus of our study is the graphical and empirical analysis of economic growth, policies and influencing factors. For the empirical analysis we have used data on the economic growth in Albania for 1996– 2014.

scholarly journals Providing Income Tax Article 21 Tax Incentives during the Covid-19 Pandemic for the Stability of Economic Growth in Indonesia

2021 ◽  
Vol 04 (03) ◽  
Author(s):  
Tiolina Evi ◽  
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
Qualitative Method ◽  
Tax Incentives ◽  
Know How ◽  
Analysis Techniques ◽  
Incentive Policies ◽  
The Government ◽  
The Stability ◽  
The Impact

This study discusses the policy analysis of providing Article 21 Income Tax incentives for taxpayers affected by the corona virus (covid-19) outbreak in order to maintain the stability of economic growth. The aim is to determine the effectiveness and influence of the provision of incentive policies by the government on economic conditions in society, especially in meeting household consumption needs. The problem raised in this study is the impact caused by the Covid-19 pandemic on employees who have been laid off, which the government then resolves by providing PPh 21 incentives with the aim of helping workers. The research method used in this research is a qualitative method. The purpose of this research is descriptive. Data collection techniques that have been collected, were analysed using qualitative data analysis techniques. The result of this research is to know the impact of government incentives for workers who have met the qualifications of the incentive recipients and to know how the scheme is in fulfilling this PPh 21 incentive.

Hong Kong's Modest Economic Growth: Sustained by Domestic Consumption

2016 ◽  
Vol 08 (01) ◽  
pp. 104-117
Author(s):  
Yang ZHANG ◽  
Sarah Y TONG
Keyword(s):  
Economic Growth ◽  
Public Spending ◽  
Household Consumption ◽  
Trade In Services ◽  
Domestic Consumption ◽  
Bilateral Agreement ◽  
Tax Reduction ◽  
The Government ◽  
Strong Expansion

Hong Kong's economy grew by 2.4% in 2015, sustained largely by a strong expansion in household consumption. The government took supporting measures, including stronger public spending and tax reduction. The economy has become increasingly interwoven with that of the Mainland and a new bilateral agreement was signed to enhance trade in services. As Hong Kong's economy is likely to face even gloomier climate in 2016, improved physical connections with the Mainland and tighter cooperation are key.

scholarly journals The Impact of Covid-19 on The Effect Multiplier on The Household Consumption Function in Jakarta

2021 ◽  
Vol 3 (2) ◽  
Author(s):  
Fahrul Riza ◽  
Michael Christianto Leonardo
Keyword(s):  
National Income ◽  
Household Consumption ◽  
Permanent Income ◽  
Annual Data ◽  
Consumption Expenditure ◽  
Permanent Income Hypothesis ◽  
Consumption Function ◽  
Short Term ◽  
Consumption Expenditures ◽  
The Impact

The purpose of this study is to examine the effect of a decrease in aggregate income, due to activity restrictions during the Covid-19 pandemic, on household consumption expenditure in Jakarta. The research model is based on the Absolute and Permanent income hypothesis, to see the long-term and short-term effects of changes in income on consumption expenditure. The research method is quantitative by using annual data on consumption expenditure and income at current prices for the period 2003 to 2020. The analysis model uses OLS and ECM regression. The results showed that income has a significant effect on the equation of the short-run and long-run consumption function. The short-term income crisis has an impact on the increase in the multiplier coefficient. In the short term there will also be an adjustment in consumption expenditures, according to what is postulated in the permanent income hypothesis. This indicates that in the short term expansionary fiscal policy is effective in increasing aggregate household consumption expenditure. Further research suggests adding the inflation variable as a proxy for economic conditions. Keywords: Absolute Income Hypothesis, Permanent Income Hypothesis, Household Consumption Expenditures, National Income, Multiplier.

scholarly journals THE INFLUENCE OF GDP, INTEREST RATE, WAGE, INFLATION AND EXCHANGE RATE ON RESIDENTIAL PROPERTY PRICE IN INDONESIA

2019 ◽  
Vol 17 (9) ◽  
Author(s):  
Badrud Duja ◽  
Heri Supriyanto
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Residential Property ◽  
Property Prices ◽  
The Us ◽  
Property Price ◽  
Us Dollar ◽  
The Government

Over the past years, Indonesia’s economic growth has been recorded among the top developing countries. The economic growth is believed to contribute to the increase on residential property prices. The main objective of this study is to analyse the influence of determinants of residential property prices in Indonesia by examining the dynamic relationships of residential property prices reflected through the Residential Property Price Index (RPPI) with Gross Domestic Product (GDP), investment interest rates, wages, inflation and the exchange rate against the US dollar using secondary data over a period of thirteen-years between 2002Q1 and 2014Q4. By applying the Engle-Granger co-integration testand the error correction model, this research aims to see the relationship between the variables both in the short- and long-term. The results of the study indicated that macroeconomic factors that were significantly related to Indonesian residential property prices were GDP, wages, inflation, and exchange rates against the US dollar, while the investment interest rate was not included in these factors. Furthermore, based on the results of the regression analysis on research data, government policy in setting minimum wage standards has the greatest impact on residential property prices in the property sector in Indonesia. Thus, the results of this research are expected to provide the government with better viewpoints that will assist them in enacting better policies in the residential property sector.

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