Abstract
Based on data from the Central Statistics Agency, Central Java has 4,20 million people (12,23%) poor population in 2017 with Rp333.224,00 per capita per month poverty line. So, Central Java has got the second rank after East Java as the province which has the highest poor population in indonesia in 2017. In this research use the fixed effects spatial durbin model method for modeling poor population in each city in Central Java at 2014-2017. The spatial durbin model is a spatial regression model which contains a spatial dependence on dependent variable and independent variable. If the spatial dependence on dependent variable or independent variables is ignored, the resulting coefficient estimator will be biased and inconsistent. The fixed effect is one of the panel data regression models which assumes a different intercept value at each observation but fixed at each time, and slope coefficient is constant. The advantage of using fixed effects in spatial panel data regression is able to know the different characteristics in each region. The dependent variable used is poor population in each city in Central Java, and the independent variable is Minimum Wage, Life Expectancy, School Participation Rate 16-18 Years, Expected Years of Schooling, Total Population, and Per Capita Expenditure. The results of the analysis shows that the fixed effects spatial durbin model is significant and can be used. The variables that significantly affect the model are the Life Expectancy and Expected Years of Schooling, and the coefficient of determination (R2) is 99.95%. Keywords: Poverty, Spatial, Panel Data, Fixed Effects Spatial Durbin Model
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