<![CDATA[This study aims to identify the occurrence of flypaper on the city and county governmentspending in Indonesia, in 2006-2008. In this case, the dependent variable used istheshopping area while the independent variable is revenue (PAD), the General AllocationFund (DAU), the Special Allocation Fund (DAK) and a dummy, to distinguish thecity /county Java and Outside Java. The sample in this study were 394 municipalities anddistricts in Indonesia with Data sources Relisasi Budget Report 2006-2008. This research usessoftware eviews 6. The analysis showed that in general does not occur flypaper on city andcounty government spending in Indonesia in 2006-2008. DAU and PAD respectively significantat 1% level, with a regression coefficient of0.601837 and 2.825710. Dummy variables indicatingthe occurrence of flypaper on the city / county in Java, while for municipalities and counties inOuter Java does not happen flypaper. This is because differences in potential revenues betweenJava and outside JavaKeywords: revenue, general allocation fund, the flypaper]]>
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