by Kiki Verico Abstract: One of the most important variables in emerging economies like Indonesia is the stability of the exchange rate. Unstable exchange rates make it almost impossible for business ventures to plan their businesses. The higher the depreciation of the Rupiah, the higher the inflation rate, and this will decrease people’s purchasing power....Read More

Abstract: Using extensive data on 1970 and 1987 urban characteristics, the paper analyzes changes in employment in specific manufacturing industries in cities between 1970 and 1987. Two sets of questions are the focus. First, what present or past characteristics of a city’s economic environment are critical in determining current employment levels in different industries? How...Read More

Abstract: Bribes by firms in Indonesia arise principally from regulations –licenses and levies –imposed by local government officials. Regulations generate direct revenues (fees) plus indirect revenues in the form of bribes. The expected value of the latter is capitalized into lower salaries needed by localities to compensate public officials. Localities in Indonesia are hampered by...Read More

Abstract: Indonesia has a tradition of corruption among local officials who harass and collect bribes from firms. Corruption flourished in the Suharto, pre-democracy era. This paper asks whether local democratization that occurred after Suharto reduced corruption and whether specific local politics, over and above the effects of local culture, affect corruption. We have a firm...Read More

Abstract: Using survey data on fishermen and fishing villages in Aceh, Indonesia from 2005 and 2007, this paper examines the effect of the December 2004 tsunami and resulting massive aid effort on local public good provision, in particular on public labor inputs, but also public capital choices. Also analyzed are the roles of and changes...Read More

Abstract Using survey data on fishermen and fishing villages in Aceh, Indonesia from 2005 and 2007, this paper examines the effect of the December 2004 tsunami and resulting massive aid effort on local public good provision, in particular on public labor inputs, but also public capital choices. Also analyzed are the roles of and changes...Read More

Abstract   Using three waves of survey data from fishing villages in Aceh, Indonesia for 2005-2009, we examine the determinants of local volunteer labor after the tsunami. Pre-existing social capital and the form of aid delivery (but not trauma) strongly affect village volunteerism initially, but these effects weaken with time. What persists is the effect...Read More