PENGUJIAN RICARDIAN EQUIVALENCE DI INDONESIA

Abstract

This research aim is to  know the influence from Gross Domestic Product (Y), Governmental Expenditure (GS), Tax (Tx), Governmental Subsidy (Tr) and Governmental Debt  (GB) to Soceity  Consumption (C). This research  used  model from Kormendi and analysis used   Error Correction Model the ( ECM)

The result of this research indicate that  the Gross Domestic Product, the Governmental Expenditure , the Tax , the Governmental Subsidy and the Governmental Debt have positive coefficient regression either  in the short run and long run  . It  means that  if Gross Domestic Product, Governmental Expenditure, Tax, Governmental, Subsidy  and Governmental Debt  are createof  the   Soceity  Consumption (C) increase too.

The sign of  coefficient sign the Gross Domestic Product ( Y), the Governmental Expenditure (GS), theTax (Tx) ,the Governmental Subsidy (Tr) andthe Governmental Debt (GB)  are positive. Pursuant to that finding can be expressed that reseaching  is general support of Ricardian Equivalence perspective according to empirical finding  by Kormendi  (1983) completed by Kormendi and Meguire (1990)

Key Word : The Gross Domestic Product , the Governmental Expenditure , the Tax  , the Governmental Subsidy,   the Governmental Debt, the Soceity  Consumption, Ricardian Equivalence