Abstract
This study aim to examine the determinants of household final consumption expenditures in East Java. The determinants were investigated using the system generalized method of moments (SYS- GMM) model and applied to data from 38 regencies/cities in East Java from 2011 to 2021. The implementation of SYS-GMM provides valid and consistent estimates. The results of the parameter significance test provide evidence that the lag of real household final consumption expenditure, real gross regional domestic product, government spending, minimum wage, and inflation rate have a significant positive impact. Meanwhile, the open unemployment rate has a significant negative impact. Based on the results of this study, policymakers must always maintain the stability of the determinants of the household's final consumption expenditure.
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