Flypaper Effect pada Kinerja Keuangan Kabupaten/Kota di Provinsi Jambi

This study aims to analyze the phenomenon of flypaper on the financial performance of the district / city in the province of Jambi. For this purpose developed two panel data regression model showing the relationship between the behavior of local government expenditure by the regional income. The research found that: 1) Revenue-sharing (DBH), allocation funds (DA), lag operational expenditure (Boit_1) and dummy autonomy (DO) significantly affect the operational expenditure district / city in the province of Jambi. The effect of DA on operating expenditure is greater than from DBH to operational expenditure, which means there flypaper in the district / city in the province of Jambi; 2) Revenue-sharing (DBH), funds allocation (DA), per capita income (Y) and dummy autonomy (DO) significantly affect capital expenditures district/city in the Province of Jambi. The effect of DA on capital expenditure is smaller than from DBH to capital expenditures, which means there flypaper in the district / city in the Province of Jambi where DA tends to be used to finance operating expenditure