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Abstract:
Regional autonomy is intended so that regions are free to regulate and manage their own affairs, including in financial matters. Decentralization is an effective government policy tool to deal with matters relating to stability and economic growth. The purpose of this study was to determine the flypaper effect phenomenon on Local Expenditures in Solo Raya. Considering the previous research, this research was conducted in Solo Raya, which consists of 1 City and 6 Regencies. This study uses a quantitative method using panel data with secondary data from 2012 to 2016 to see the flypaper effect phenomenon on Local Expenditures. The results found are flypaper effects that occur in local expenditure in Solo Raya. PAD, DAU, and DBH simultaneously have a positive and significant effect on Local Expenditures in Solo Raya. Partially PAD and DAU have a positive and significant effect on Local Expenditures. While DBH does not have a significant but positive effect on Local Expenditures.
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