FLYPAPER EFFECT PADA DANA ALOKASI UMUM (DAU) DAN PENDAPATAN ASLI DAERAH (PAD) TERHADAP BELANJA DAERAH PADA KABUPATEN DAN KOTA DI JAWA TIMUR

Abstract

The purpose of the analysis is to analized the effect of DAU and PAD toward region expenditure of The City in East Java Province. By using multiple regression analysis knowing that DAU and PAD have positive significant effect toward region expenditure. DAU has a dominant effect toward region expenditure of The City in East Java Province. This condition shows that DAU has more effect toward region expenditure than PAD, it means flaypaper effect happen. The point of determinant coefficient is 97.5%, it means the independent variable DAU and PAD have a significant effect 97.5% toward region expenditure. It means variable region expenditure influenced by other variable only 2.5%.