The Impact of Fiscal Reform on Indonesian Macroeconomy: A CGE Framework

• Autorzy: Herbert W. V. Hasudungan , Sulthon S. Sabaruddin
• Języki publikacji: EN

Abstrakty

EN

This paper aims to investigate the impact of exogenous fiscal policies on the Indonesian main macroeconomic indicators and the implications on different institutions and sectors in the economy using the static Computable General Equilibrium (CGE) analysis. Three simulations are conducted in order to analyze the expansion of exogenous public spending. The results revealed that the increase of government expenditure on goods under the adjusted government deficit and balance of payment generates the highest improvement on Indonesian GDP but resulting an increase in government deficit. In contrast, under financing scheme of either lowering subsidy rates across activities or increasing the ad valorem tax rates would result in lower improvement on Indonesian GDP. This is because it directly escalates the cost of production and thus increases the prices of final goods purchased by the households which result in a fall in their real consumption and in turn eventually could lead to a decrease in national income. (original abstract)

Słowa kluczowe

EN

Fiscal policy; Tax reform; Computable General Equilibrium model (CGE)

PL

Polityka fiskalna; Reforma podatkowa; Obliczeniowy model równowagi ogólnej

• Czasopismo: Central European Journal of Economic Modelling and Econometrics (CEJEME)
• Rocznik: 2016
• Tom: 8
• Numer: nr 3
• Strony: 181--202

Twórcy

autor

Herbert W. V. Hasudungan

• University of Dundee

autor

Sulthon S. Sabaruddin

• Embassy of the Republic of Indonesia in Sana'a; Ministry of Foreign Affairs of the Republic of Indonesia

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Identyfikatory

DOI

DOI: 10.24425/cejeme.2016.119194