Spatial Inequalities in Indonesia, 1996–2010: A Hierarchical Decomposition Analysis

This study analyzes spatial inequalities in Indonesia from 1996–2010 using the hierarchical decomposition method. It uses household expenditures rather than regional accounts and tries to investigate the contributions of spatial inequalities to overall expenditure inequality. We find that urban–rural disparity constitutes 15–25% of overall expenditure inequality. A large difference exists between urban and rural areas in the magnitude of...