This study examines the impact of legislature size on local public finance and service outcomes in Indonesia. The investigation employs both continuity- and randomization-based regression discontinuity methods to accommodate the endogeneity of council size and to identify its causal effects on local government spending, service delivery, and own-source revenue mobilization. Many studies have examined the influence of increasing legislature size on expenditures, but no consensus has emerged on the direction of impacts. Moreover, interpretation of the efficiency of derived spending effects has remained elusive and reliant on ad hoc theorizing. This is the first study to examine the causal impact of council size on service outcomes, thereby facilitating an empirically based understanding of efficiency effects. The study finds that increasing legislature size negatively affects local government total and capital spending. The investigation also shows that rising legislature size has a negative influence on citizen access to public services. Finally, the examination offers evidence to suggest that an increasing number of legislators have no impact on local own-source revenues. Taken together the results imply a decline in local efficiency: residents pay the same amount in taxes but receive fewer services. The findings in this investigation contradict recent theoretical predictions and empirical results from other research.

中文翻译：

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印度尼西亚的立法机构规模、地方政府支出和税收以及公共服务获取

本研究考察了立法机构规模对印度尼西亚地方公共财政和服务成果的影响。调查采用连续性和基于随机化的回归不连续性方法来适应议会规模的内生性，并确定其对地方政府支出、服务提供和自有收入动员的因果影响。许多研究已经研究了增加立法机构规模对支出的影响，但尚未就影响的方向达成共识。此外，对衍生支出效应的效率的解释仍然难以捉摸，并且依赖于临时理论。这是第一项研究理事会规模对服务结果的因果影响的研究，从而促进对效率影响的实证理解。研究发现，增加立法机关的规模会对地方政府的总支出和资本支出产生负面影响。调查还表明，不断扩大的立法机构对公民获得公共服务的机会产生负面影响。最后，审查提供的证据表明越来越多的立法者对地方自有收入没有影响。综上所述，结果意味着地方效率的下降：居民缴纳相同数量的税款，但获得的服务较少。本次调查的结果与最近的理论预测和其他研究的实证结果相矛盾。审查提供的证据表明，越来越多的立法者对地方自有收入没有影响。综上所述，结果意味着地方效率的下降：居民缴纳相同数量的税款，但获得的服务较少。本次调查的结果与最近的理论预测和其他研究的实证结果相矛盾。审查提供的证据表明，越来越多的立法者对地方自有收入没有影响。综上所述，结果意味着地方效率的下降：居民缴纳相同数量的税款，但获得的服务较少。本次调查的结果与最近的理论预测和其他研究的实证结果相矛盾。