One consequence of Indonesian fiscal decentralization is that local governments will have to seek additional revenues coming from their own resources, especially local taxes. For the first year of the implementation of decentralization alone, they had authorized approximately 1000 new taxes and...

The problem addressed mostly in tax and government spending study is the endogeneity problem between tax/spending and income or economic growth. Therefore, the efforts to find instruments for tax variable are very crucial. This paper investigates the factors that determine changes in state tax...