scholarly journals ANALISIS PENGARUH BELANJA PEGAWAI, BELANJA BARANG DAN BELANJA MODAL TERHADAP REALISASI PENERIMAAN PAJAK DI INDONESIA

Media Trend ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. 203-214
Author(s):  
Tria Sandi Kurniawan ◽  
Dyah Reni Irmawati
Keyword(s):  
Error Correction ◽  
Government Spending ◽  
Analytical Methods ◽  
Capital Expenditure ◽  
Time Lag ◽  
Tax Revenue ◽  
Significant Determinant ◽  
Partial Adjustment ◽  
Correction Model ◽  
Partial Adjustment Model

This study examines the effect of the realization of government spending consisting of goods expenditure, capital expenditure and employee expenditure on tax revenue in Indonesia. In this study, we use four analytical methods that consist of  Granger Test, Partial Adjustment Model (PAM), Error Correction Model (ECM) and Vector Autoregression (VAR). The result shows that the realization of goods and employee expenditure are significant determinant of the tax revenue. Further examination shows that the shocks on goods and employee expenditure havea positive impacts toward tax revenue. However the shock effects are different on those variables. On the shock to goods expenditure, the tax revenue response will occur directly, in contrast to shock on employee expenditure that requires time lag. This study also finds that between PAM and ECM, the ECM model is more appropriate to be used to explain the effect of government spending on tax revenue in Indonesia.

Analisis Pengaruh Realisasi Belanja Pemerintah Terhadap Penerimaan Pajak di Indonesia

2020 ◽  
Vol 5 (3) ◽  
pp. 171-181
Author(s):  
Tria Sandi Kurniawan ◽  
Dyah Wulan Sari ◽  
Dyah Reni Irmawati
Keyword(s):  
Error Correction ◽  
Government Spending ◽  
Analytical Methods ◽  
Capital Expenditure ◽  
Time Lag ◽  
Tax Revenue ◽  
Significant Determinant ◽  
Partial Adjustment ◽  
Correction Model ◽  
Partial Adjustment Model

This study examines the effect of the realization of government spending consisting of goods expenditure, capital expenditure and employee expenditure on tax revenue in Indonesia. In this study, we use four analytical methods that consist of  Granger Test, Partial Adjustment Model (PAM), Error Correction Model (ECM) and Vector Autoregression (VAR). The result shows that the realization of goods and employee expenditure are significant determinant of the tax revenue. Further examination shows that the shocks on goods and employee expenditure have a positive impacts toward tax revenue. However the shock effect are different on those variables. On the shock to goods expenditure, the tax revenue response will occur directly, in contrast to shock on employee expenditure that requires time lag. This study also find that between PAM and ECM, the ECM model is more appropriate to be used to explain the effect of government spending on tax revenue in Indonesia.  

scholarly journals Analysis of Indonesian Tax Revenue

2017 ◽  
Vol 1 (01) ◽  
pp. 71
Author(s):  
Amalia Wijayanti ◽  
Firmansyah Firmansyah
Keyword(s):  
Exchange Rate ◽  
Error Correction ◽  
Government Spending ◽  
Inflation Rate ◽  
Correction Term ◽  
Error Correction Model ◽  
Tax Revenue ◽  
Correction Model ◽  
Long Run ◽  
Short Run

<p>This study analyzes the long-run and short-run effect of macroeconomic factors, such as real Gross Domestic Product (GDP), inflation rate, exchange rate and government spending on Indonesia’s tax revenue during 1976-2013, by utilizing the Error Correction Model (ECM). The finding of the study demontrates that in the long-run; the real GDP, exchange rate, and government spending affect Indonesia’s tax revenue, except the inflation rate. In short-run, Indonesia’s tax revenue statisically affected by government spending, while others variable do not influence Indonesia’s tax revenue. Error Correction Term (ECT) coefficient is 0.221, explains incompatibility tax revenue occur in long-run is corrected of 22 percent in one period.</p><p><br />JEL Classification: E01, E20, H20<br />Keywords: Error Correction Model, Macroeconomic, Tax revenue</p>

scholarly journals The Relationship between Tax Revenue and Economic Growth in Nepal: A Co-integration Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Gautam Maharjan
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Unit Root Test ◽  
Error Correction Model ◽  
Series Data ◽  
Tax Revenue ◽  
Correction Model ◽  
The Impact ◽  
The Relationship

The main objective of this paper is to examine the relationship between tax revenue and economic growth in Nepal. The 43 years' annual time series data from 1974/75 to 2016/17 of GDP, tax revenue and nontax revenue have been used to test the causal relationship of the variables. A unit root test, Engle-Granger’s co-integration and Error Correction Model have been applied for the data analysis. The variables have been found stationary after first differencing I(1) when Augmented Dickey-Fuller unit root test is employed. From Engel-Granger test, it has been found that the variables are co-integrated. The short-term coefficients are not significant, however error correction term (ECT) is significant and contains a negative sign in the error correction model (ECM). It validates the ECM model. The ECT has shown that the annual speed of adjustment from disequilibrium to equilibrium is 34.3 percent. So far as the relationship is concerned, there is a long run relationship between tax revenue and economic growth in Nepal controlling the non-tax revenue. The impact of tax revenue on economic growth could be a good impetus for the policy maker and planner to increase the collection of revenue for the country.

scholarly journals The Effect of Central Bank Independence on Price Stability: The Case of Indonesia

2013 ◽  
Vol 15 (4) ◽  
pp. 353-376
Author(s):  
Yessy Andriani ◽  
Prof. Prasanna Gai
Keyword(s):  
Central Bank ◽  
Error Correction ◽  
Central Bank Independence ◽  
Least Square ◽  
Price Stability ◽  
Inflation Target ◽  
Partial Adjustment ◽  
Correction Model ◽  
Ordinary Least Square ◽  
The Relationship

This paper investigates the relationship between central bank independence (CBI) and inflation in Indonesia during 1970-2006. Using partial adjustment Ordinary Least Square (OLS) and Engel Granger Error Correction Model, the result shows that legal CBI index inversely affect the inflation, while the turnover of governor is not significant. This result emphasizes Bank Indonesia to strengthen its independency in order to achieve his inflation target. Keywords: Central bank independency, Inflation, Error Correction Model.JEL Classification : C32, E58

Comparing Dynamic Specifications: The Case of Presidential Approval

1991 ◽  
Vol 3 ◽  
pp. 51-87 ◽  
Author(s):  
Nathaniel Beck
Keyword(s):  
Transfer Function ◽  
Error Correction ◽  
Dynamic Properties ◽  
Presidential Approval ◽  
Partial Adjustment ◽  
Correction Model ◽  
Individual Level ◽  
Adjustment Error ◽  
Function Models ◽  
Transfer Function Models

This article compares a variety of models of presidential approval in terms of their dynamic properties and their theoretical underpinnings. Exponential distributed lags, partial adjustment, error correction, and transfer function models are considered. The major difference between the models lies in interpretation rather than statistical properties. The error correction model seems most satisfactory. Approval models based on individual level theories are examined, and found to give no additional purchase.

scholarly journals Tax Revenue Productivity on Nepalese Economy

2020 ◽  
Vol 10 (1) ◽  
pp. 32-43
Author(s):  
Binod Sah
Keyword(s):  
Error Correction ◽  
Time Series Data ◽  
Explanatory Power ◽  
Error Correction Model ◽  
Series Data ◽  
Fiscal Year ◽  
Tax Revenue ◽  
Correction Model ◽  
The Impact ◽  
Year 2013

This paper seeks to examine the productivity of Tax Revenue (TR) in the Nepalese economy. It, therefore, analyzes the impact of TR on GDP in aggregate level. This study adopts explanatory research design and attempts to determine the relationship between TR and the GDP. Exchange rate, market capitalization money supply and government spending being the intervening variables included in the model. In order for the specification of a model of co integrated regression model with a time series data of the variables are employed for the study period of 20 years, from 1999/2000 to 2018/19. The values of all the variables are converted into real price (constant price) by GDP deflator. The GDP deflator and CPI year 2013/14 have been assumed equivalent to the base year 2013/14 according to Nepalese fiscal year. Since it is observed that residuals are not normally distributed, autocorrelation and multi-co linearity problem in the model, it is necessary to improve the non-normal distribution, autocorrelation and multi-co linearity problem in the model. Therefore, the data are transposed into first difference and run the model with error correction model (ECMt-n). The R2 shows that the explanatory power of the model, indicating that the variation of GDP is explained to the extent of 81 percent variation of the independent variable included in the model. The estimated coefficient of TR in error correction model shows that one percent point rise in TR has led to0.17645 percent point increase in real GDP in short run, whereas it is found 0.21364 percent point in the long-run. This is supported by (World bank, 2003, 2007, 2018) using a large sample of developing countries observed over the period 1980-2006, and even after factoring in the endogeneity of tax revenue.

scholarly journals Modelling Short-run Money Demand for the US

2017 ◽  
Vol 4 (5) ◽  
pp. 9
Author(s):  
Marcus Scheiblecker
Keyword(s):  
Steady State ◽  
Error Correction ◽  
Money Demand ◽  
Partial Adjustment ◽  
Correction Model ◽  
The Past ◽  
The Us ◽  
Short Run ◽  
Armax Model ◽  
Simple Error

There is a vast amount of empirical evidence concerning the cointegrating relationship between money demand, some kind of interest rate and income. In contrast to this, short-run dynamics are still opaque. In the existing literature, the return to steady state is modeled quite differently. The range goes from simple error correction models to non-linear approaches.We herewith propose a method for considering not only disequilibria between money demand and its steady state for the last period only, but also for such of the recent past in a parsimonious and economically meaningful way. As different from multicointegration, weights for cumulating steady-state deviations are geometrically decreasing, the more they are located in the past. This model possesses an ARMA (1,1) representation and leads to an ARMAX-model, if combined with a conventional error correction model. This approach is shown to track money demand short-run dynamics better and more parsimoniously than partial-adjustment models.

scholarly journals ANALYSIS OF INCLUSIVE GROWTH IN POVERTY, UNEMPLOYMENT AND INCOME INEQUALITY IN WEST SUMATERA PROVINCE: PANEL ERROR CORRECTION MODEL APPROACH

2020 ◽  
Vol 5 (1) ◽  
pp. 19
Author(s):  
Hasdi Aimon ◽  
Anggi Putri Kurniadi ◽  
Muhammad Kanzu Satrio
Keyword(s):  
Income Inequality ◽  
Error Correction ◽  
Cross Section ◽  
Government Spending ◽  
Error Correction Model ◽  
Inclusive Growth ◽  
Short Term ◽  
Correction Model ◽  
Education Investment

<p><em>This study investigates the determinants of inclusive growth in poverty, unemployment and income inequality in West Sumatera Province. This study uses time series from 2011-2017, while the cross section is 12 districts and 7 cities, which were analyzed by the panel error correction model. There are several important findings in this study. First, the results of the analysis for the long term are that inclusive growth in poverty is positively and significantly affected by health, education, investment and government spending. Meanwhile, inclusive growth in unemployment and income inequality is negatively and significantly affected by health, education, investment and government spending. Second, the results of the analysis for the short term are investment and government spending disrupts the balance of inclusive growth in poverty. Meanwhile, education and investment disrupt the balance of inclusive growth in unemployment and income inequality. Third, there is a long term balance on inclusive growth in poverty, unemployment and income inequality. Therefore, it is highly recommended for districts/cities governments in West Sumatera Province to intervene in the independent variables that have significant and disturbing effects in the short term, so that conditions of inclusive growth in poverty, unemployment and income inequality can be achieved optimally.</em></p><p><em><br /></em></p><p><em><em>Studi ini menyelidiki faktor-faktor penentu </em><em>pertumbuhan inklusif pada kemiskinan, pengangguran dan ketimpangan pendapatan di Provinsi Sumatera Barat. Penelitian ini menggunakan deret waktu dari 2011-2017, sedangkan cross section adalah 12 kabupaten dan 7 kota, yang dianalisis dengan metode panel error correction model. Terdapat beberapa temuan penting dalam penelitian ini. Pertama, hasil analisis untuk jangka panjang adalah  pertumbuhan inklusif pada kemiskinan dipengaruhi secara positif dan signifikan olehkesehatan, pendidikan, investasi dan pengeluaran pemerintah.Sedangkan, pertumbuhan inklusif pada pengangguran dan ketimpangan pendapatan dipengaruhi secara negatif dan signifikan oleh kesehatan, pendidikan, investasi dan pengeluaran pemerintah.Kedua, hasil analisis untuk jangka pendek adalah investasi dan pengeluaran pemerintah menganggu keseimbangan pertumbuhan inklusif pada kemiskinan. Sedangkan, pendidikan dan investasi menganggu keseimbangan pertumbuhan inklusif pada penganguran dan ketimpangan pendapatan. Ketiga, terdapat keseimbangan dalam jangka panjang terhadap pertumbuhan inklusif pada kemiskinan, pengangguran dan ketimpangan pendapatan meskipun dalam jangka pendek tidak mengalami keseimbangan.Oleh karena itu, sangat dianjurkan bagi pemerintah kabupaten/kota di Provinsi Sumatera Barat untuk melakukan intervensi pada variabel independent yang berpengaruh signifikan dan menganggu dalam jangka pendek, sehingga kondisi pertumbuhan inklusif pada kemiskinan, pengangguran dan ketimpangan pendapatan dapat tercapai dengan optimal.</em></em></p>

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