Abstract
The aim of this chapter is to apply an extended DEA model – emerging from a blend of a distance friction minimization (DFM) and a Goals-Achievement (GA) approach on the basis of the Charnes-Cooper-Rhodes (CCR) method – in order to generate a more satisfactory efficiency-improvement projection model in conventional DEA. Another novelty of our approach is the introduction of prior goals set by a DMU by using a GA approach. The GA model specifies a goal value for efficiency improvement in a DFM model. The GA model can compute the input reduction value or the output increase value in order to achieve a prespecified goal value for the efficiency improvement in an optimal way. Next, using the integrated DFM-GA model, we are able to develop an operational efficiency-improvement projection that provides a clear, quantitative orientation for the actions of a DMU. The abovementioned DFM-GA model is illustrated empirically by using a data set of efficiency indicators for cities in Hokkaido prefecture in Japan, where the aim is to increase the efficiency of local government finance mechanisms in these cities, based on various input and output performance characteristics. In summary, this chapter presents a practical policy instrument that may have great added value for the decision making and planning tasks of both public and private actors.
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Suzuki, S., Nijkamp, P. (2017). Performance Measurement of Local Government Finance in Japan: Combination of Goals-Achievement Model with a CCR Model. In: Regional Performance Measurement and Improvement. New Frontiers in Regional Science: Asian Perspectives, vol 9. Springer, Singapore. https://doi.org/10.1007/978-981-10-0242-7_6
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DOI: https://doi.org/10.1007/978-981-10-0242-7_6
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