Jurnal Ekonomi
Vol. 12 No. 04 (2023): Jurnal Ekonomi, 2023

Expansionary Fiscal Impact on Macroeconomic Conditions; Computable General Equlibrium (Cge) Model Approach

Rita Handayani (Universitas Muhammadiyah Sumatera Utara)
Hastina Febriyanti (Universitas Muhammadiyah Sumatera Utara)



Article Info

Publish Date
31 Oct 2023

Abstract

The Computable General Equilibrium model is used to build a general balance in the Indonesian economic model, to see the effectiveness of the impact of expansionary fiscal policy implemented by the Government on economic growth, household group income and sectoral employment during the 2019-2021 pandemic period . The PEP -1-1 model is used with static version 2.0 on GAMS 23.5 software with two variables that are simulated as shocks for the model that has been built, both independently and simultaneously. Using expansionary fiscal policy variables, namely social protection and infrastructure development. The results of the expansionary fiscal simulation carried out by the government increased economic growth by 0.03 percent, increasing sectoral labor absorption in 24 economic sectors in Indonesia. The banking sector and other service sectors experienced the highest increase in labor absorption by 8 percent and the air transportation, trade and fisheries sectors. The impact of the decline occurred in the restaurant and air transportation sectors by 9 percent. The income level indicator also saw an increase in the hhk6, hhk3 and hhd 2 groups reaching 0.52-0.21 percent. Meanwhile, the hhk1 household group was the only household group that experienced a decline in household income of 0.01 percent.

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Journal Info

Abbrev

Ekonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi [p. ISSNĀ 2301-6280, e. ISSNĀ 2721-9879] is a peer-reviewed journal published Half times a year (June, and December) by SEAN Institute. Jurnal Ekonomi is intended to be the journal for publishing articles reporting the results of economics research. Jurnal Ekonomi invites manuscripts ...