AbstractsEconomics

Theoretical thesis. Bibliography: pages 172-174. Chapter 1. Introduction  – Chapter 2. Tax smoothing : tests on Indonesian data  – Chapter 3. Sustainability of fiscal policy and the revenue-expenditure nexus : the case of Indonesia  – Chapter 4. Does Indonesia pursue sustainability fiscal policy?  – Chapter 5. Conclusion. This thesis deals with two related issues of fiscal policy optimality and fiscal policy sustainability in Indonesia. In Chapter 2, I examined whether fiscal policy has been optimal based on the tax smoothing hypothesis. In Chapter 3 and 4, I performed two different fiscal policy sustainability analyses. In Chapter 3 analysis is based on the government intertemporal budget constraint (IBC) approach, while in Chapter 4 analysis is based on Bohn’s Model Based Sustainability (MBS) approach. In general, I found that fiscal policy in Indonesia since 1970s has been optimal and sustainable, at least in the intertemporal dimension. 1 online resource (viii, 183 pages) graphs, tables Advisors/Committee Members: Macquarie University. Department of Economics.