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Hyperbolic Discounting in Fiscal Policy: The Case of Malaysian Government Budget Putri Swastika; Azura Othman
Jurnal Internasional Ekonomi Islam Vol 1 No 01 (2019): International Journal of Islamic Economics
Publisher : The Postgraduate of Institut Agama Islam Negeri Metro Lampung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32332/ijie.v1i01.1571

Abstract

Thispaper examines the lag effect of interest payments on the national output represented by GDP. The lag effectimplies the observation of hyperbolic discounting in the fiscal policy. The idea is round-eyed;that the government takes on high debts to finance their spending while not factoring or placing less importanceon the cost of the interest payments. The concept of hyperbolic discounting of behavioral economics is used in this paper to explain this phenomenon in the present path of public policy which operates under an interest-based system. We conduct this analysis by examiningthe present fiscal model and its effect on the economy, wherein debt is preferredin fiscal policy framework.It appears from the findings that the trend in Malaysia’s fiscal policy shows the presence of hyperbolic discounting.Shifting the debt burden to future governments and spending above revenue capacity can be seen as a manifestation of the common pool problem. Two main policy recommendations can be made. Firstly, the fiscal policy structure has to move away from the current interest-based borrowing. This is because an intrinsic feature of the interest-based system is that the risks of a debt transaction are transferred from the lender to the borrower.Secondly, the current tax structure can be simplied to improve tax compliance so as to improve tax revenue collection.Both the above policy recommendations have the potential of reducing the effect of hyperbolic discounting. The first increases the interaction between the government and the public thus enhances the governance structure of the government. The government will have to be more transparent in its dealing as the public has a vested interest in the development projects. The second enhances the first effect by providing a potential increase in tax revenue which will reduce the stress on debt servicing and the need for borrowing.
EKSPLORASI FAKTOR YANG MEMPENGARUHI PERTUMBUHAN EKONOMI DI INDONESIA PERIODE 2011-2024 Puja Rosiyadi Putri; Yuyun Yunarti; Putri Swastika
Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA) Vol 9 No 2 (2025): Edisi Mei - Agustus 2025
Publisher : LPPM STIE Muhammadiah Bandung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31955/mea.v9i2.5668

Abstract

Pertumbuhan ekonomi Indonesia bersifat fluktuatif; diperlukan sebuah penelitian untuk menyelidiki unsur-unsur yang memengaruhi pertumbuhan ini. Penelitian ini berupaya untuk mengkaji determinan pertumbuhan ekonomi di Indonesia dari tahun 2011 hingga 2024. Penelitian ini menggunakan metodologi kuantitatif yang memanfaatkan analisis regresi linier berganda dengan perangkat lunak IBM SPSS Statistics 30. Data yang digunakan terdiri dari deret waktu tahunan yang diperoleh dari https://www.bps.go.id/id. Penelitian ini berupaya untuk memastikan sejauh mana pengangguran, kemiskinan, dan inflasi memengaruhi pertumbuhan ekonomi di Indonesia. Temuan penelitian ini menunjukkan bahwa pengangguran berdampak buruk pada pertumbuhan ekonomi, kemiskinan berdampak buruk pada pertumbuhan ekonomi, dan inflasi memengaruhi pertumbuhan ekonomi secara positif. Penelitian ini memberikan implikasi penting bagi pemerintah untuk terus menjaga stabilitas inflasi dengan pengendalian jumlah uang beredar yang diatur oleh Bank Indonesia, agar inflasi tetap terkendali dan mampu menjaga efektivitas para pelaku ekonomi. Pemerintah juga harus memperhatikan pengendalian tingkat pengangguran dan kemiskinan, serta meningkatkan kualitas pendidikan agar mampu meningkatkan pertumbuhan ekonomi yang berkelanjutan