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All Journal The Indonesian Journal of Accounting Research
Prabowo, Raden Adiguna
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Economics, Econometrics & Finance

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Developing a Method to Measure Public Prosperity Gap between Ideal and Current Conditions of a Local Government: A Public Financial Management Perspective Prabowo, Raden Adiguna; Ritonga, Irwan Taufiq
The Indonesian Journal of Accounting Research Vol 28, No 2 (2025): IJAR May 2025
Publisher : The Indonesian Journal of Accounting Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33312/ijar.832

Abstract

This study aims to develop a method for measuring the public prosperity gap between the ideal condition, as stated in the constitution, and the current condition of a local government, utilizing the Purchasing Power Parity (PPP) Theory and the concept of service-level solvency. This study uses the City of Melbourne as a representation of ideal conditions and the City of Jakarta as a representation of current conditions. The model developed in this study can accurately measure the prosperity gap that occurs and assess its severity. The limitation of this study is the use of the service solvency in general terms to measure the prosperity of the community. The use of specific solvency should improve the accuracy of the prosperity gap analysis. However, these limitations do not reduce the validity of the model.
Co-Authors Irwan Taufiq Ritonga