Based on model testing procedure this research used Fixed Effect Model      ( FEM ). The results showed that Local Original Revenue (LOR), Revenue Sharing (RS), the General Allocation Fund (GAF) had a positive significant effect on Capital Expenditure Allocation ( CEA ) of 35 district / town government in Central Java Province while Special Allocation Fund (SAF) had no significant effect on Capital Expenditure Allocation ( CEA .Keywords: Local Original Revenue, Revenue Sharing, General Allocation Fund, the Special Allocation Fund and Capital Expenditures.
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