xliv There is no specific schema for the third hypothesis related with the hypothesis
built. The step three, the researcher wants to differentiate flypaper effect that occurs in the three different areas.
4. Step four
Figure 3 Step four theoretical Schema
CHAPTER III RESEARCH METHODOLOGY
The previous chapter has been discussed related with theoretical review and hypothesis development. The chapter III explains about the research design, data, tools
and hypothesis testing.
A. Research Design
The type of research is empirical research to test the influence of local original revenue and general allocation fund toward local government spending. Moreover this
study wants to detect whether flypaper effect anomaly occurs in the local government in Indonesia. The independent variables in this research are local original revenue, general
Flypaper Effect X3
Local Government Independency Degree
Y3
xlv allocation fund, and flypaper effect. The dependent variables tested in the research are
local government spending
t
, the prediction of local government spending of
t+1
, and independency degree of the local government.
B. Population and Sample
Sekaran 2003 states that, population refers to the entire group of people, events, or thins of interest that the researcher wishes to investigate. Then population can be
explained as collection or numbers of people or events that are interesting to be analyzed. The research population is all Indonesian local government financial statement of
regencies and municipalities. The total population is 455 local governments; they are formed in 369 regencies and 86 municipalities.
This data included as the cross section data. According to the time dimension, this research is included into cross section because in this research only take one period
of data. This is in line with Jogiyanto 2005 that the cross section is the time dimension of research that involve only one certain time with a lot of samples. Moreover this
research has a lot of data as samples to be analyzed. Sample is part of population; it consists of elements having similar characteristics
with population Sekaran 2003. Sampling method used is purposive sampling. It is related with the desired information availability Sekaran 2003. In this study the
researcher collects all of information from the populations which have the complete available information as wanted to be analyzed.
Based on the statements of Rosche 1975, Krejcie and Morgan 1970 as well as Cohen 1969 that cited by Sekaran 2003 the sample in multiple regression analysis
minimally should be ten times of the independent variables. Then as also cited on
xlvi Sekaran 2003, Krejcie and Morgan 1970 as well as Cohen 1969 suggest that if the
population 455 therefore the sample should be around 210.
C. Data Source and Data Collection
