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A Generalized Goals-achievement Model in Data Envelopment Analysis: an Application to Efficiency Improvement in Local Government Finance in Japan

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  • Peter Nijkamp
  • Soushi Suzuki

Abstract

Abstract Data envelopment analysis (DEA) has become an established benchmark tool in efficiency strategies in both the public and the private sectors. The aim of this paper is to present and apply a newly developed, emerging from a blend of a Distance Friction Minimization (DFM) and a Goals Achievements (GA), model in DEA. The above-mentioned DFM-GA model is illustrated empirically by using a data set of efficiency indicators for cities in Hokkaido prefecture in Japan. In summary, this paper presents a practical policy instrument that may contribute to efficient decision making of both public and private actors. Modèle généralisé de réalisation des objectifs dans l'analyse par la méthode d'enveloppe: application dans l'augmentation du rendement dans les finances des administrations régionales au Japon RÉSUMÉ La méthode d'enveloppe [data envelopment analysis (DEA)] est un étalon bien établi pour les stratégies d'efficacité tant dans le secteur public que dans le secteur privé. L'objectif de la présente communication est de présenter et d'appliquer un modèle de méthode d'enveloppe nouveau et ajusté. Le modèle DFM-GA susmentionné est illustré de façon empirique au moyen d'un ensemble d'indicateurs d'efficacité pour des villes de la préfecture d'Hokkaido, au Japon. En résumé, la présente communication présente un instrument de politique pratique qui pourrait contribuer à des prises de décision efficaces par des acteurs tant publics que privés. Un modelo generalizado de logro de objetivos en el análisis envolvente de datos: aplicación a la mejora de la eficiencia en las finanzas de gobiernos locales de Japón RÉSUMÉN El análisis envolvente de datos (DEA) se ha convertido en una herramienta de referencia establecida en las estrategias de eficiencia, tanto en el sector público como privado. El objetivo de este trabajo es presentar y aplicar un modelo DEA ajustado y recién desarrollado. El modelo DFM-GA mencionado anteriormente se ilustra empíricamente utilizando un conjunto de datos de indicadores de eficiencia relacionados con ciudades de la prefectura de Hokkaido, Japón. En resumen, este trabajo presenta un instrumento práctico de política que puede contribuir a una toma de decisiones eficiente tanto de actores públicos como privados.

Suggested Citation

  • Peter Nijkamp & Soushi Suzuki, 2009. "A Generalized Goals-achievement Model in Data Envelopment Analysis: an Application to Efficiency Improvement in Local Government Finance in Japan," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(3), pages 249-274.
    • Handle: RePEc:taf:specan:v:4:y:2009:i:3:p:249-274
    DOI: 10.1080/17421770903114687
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    1. Ifigeneia-Dimitra Pougkakioti, 2021. "Measuring The Efficiency And Productivity Change Of Municipalities With An Output Oriented Model:Empirical Evidence Across Greek Municipalities Over The Time Period 2012-2016," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 15(1), pages 98-125, JUNE.
    2. Laura Carosi & Giovanna D'Inverno & Letizia Ravagli, 2014. "Global public spending efficiency in Tuscan municipalities," Discussion Papers 2014/175, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. Jose M. Cordero & Cristina Polo & Nickolaos G. Tzeremes, 2020. "Evaluating the efficiency of municipalities in the presence of unobserved heterogeneity," Journal of Productivity Analysis, Springer, vol. 53(3), pages 377-390, June.
    4. Karima Kourtit & Daniel Arribas-Bel & Peter Nijkamp, 2012. "High performers in complex spatial systems: a self-organizing mapping approach with reference to The Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 501-527, April.
    5. B. Fingleton & P. Cheshire & H. Garretsen & D. Igliori & J. Le Gallo & P. McCann & J. McCombie & V. Monastiriotis & B. Moore & M. Roberts, 2009. "Editorial," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(3), pages 243-248.
    6. Jose M. Cordero & Francisco Pedraja-Chaparro & Elsa C. Pisaflores & Cristina Polo, 2017. "Efficiency assessment of Portuguese municipalities using a conditional nonparametric approach," Journal of Productivity Analysis, Springer, vol. 48(1), pages 1-24, August.
    7. Karima Kourtit & Daniel Arribas-Bel & Peter Nijkamp, 2013. "High Performance in Complex Spatial Systems: A Self-Organizing Mapping Approach with Reference to The Netherlands," Tinbergen Institute Discussion Papers 13-194/VIII, Tinbergen Institute.
    8. Skica Tomasz & Leśniowska-Gontarz Małgorzata & Miszczyńska Katarzyna, 2019. "Measuring the Efficiency of Polish Municipalities – Data Envelopment Analysis Approach," South East European Journal of Economics and Business, Sciendo, vol. 14(2), pages 54-66, December.
    9. Kouhei Kikuchi & Soushi Suzuki & Peter Nijkamp, 2024. "Bullying Among Pupils at School and a Country’s Educational System: An Efficiency Evaluation of Educational Performance in Europe by Means of an Extended Data Envelopment Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 174(1), pages 249-280, August.
    10. Soushi Suzuki & Karima Kourtit & Peter Nijkamp, 2017. "The robustness of performance rankings of Asia-Pacific super cities," Asia-Pacific Journal of Regional Science, Springer, vol. 1(1), pages 219-242, April.
    11. D'Inverno, Giovanna & Carosi, Laura & Ravagli, Letizia, 2018. "Global public spending efficiency in Tuscan municipalities," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 102-113.
    12. B. Fingleton & P. Cheshire & H. Garretsen & D. Igliori & J. Le Gallo & P. McCann & J. McCombie & V. Monastiriotis & B. Moore & M. Roberts, 2011. "Editorial," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 351-357, December.
    13. Bönisch, Peter & Haug, Peter & Illy, Annette & Schreier, Lukas, 2011. "Municipality Size and Efficiency of Local Public Services: Does Size Matter?," IWH Discussion Papers 18/2011, Halle Institute for Economic Research (IWH).
    14. Cordero, José Manuel & Pedraja-Chaparro, Francisco & Pisaflores, Elsa C. & Polo, Cristina, 2016. "Efficiency assessment of Portuguese municipalities using a conditional nonparametric approach," MPRA Paper 70674, University Library of Munich, Germany.
    15. Tumaniants, Karen A. (Туманянц, Карэн) & Sesina, Julia E. (Сесина, Юлия), 2017. "Social Expenditures of Russian Regions in Terms of “Input-Output” [Расходы На Социальную Политику Российских Регионов В Координатах «Затраты — Результат»]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 128-149, October.
    16. Isabel Narbón-Perpiñá & Kristof De Witte, 2016. "Local governments’ efficiency: A systematic literature review – Part II," Working Papers 2016/21, Economics Department, Universitat Jaume I, Castellón (Spain).
    17. Soushi Suzuki & Peter Nijkamp, 2021. "High urban population density as a facilitator of energy–environment–economy performance–development of an autoconfiguration target model in data envelopment analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 5(1), pages 261-287, February.
    18. Karima Kourtit & Peter Nijkamp & Soushi Suzuki, 2023. "Quantitative performance assessment of Asian stellar cities by a DEA cascade system: a capability interpretation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(1), pages 259-286, February.
    19. Habib Zare Ahmadabadi & Fatemeh Zamzam & Ali Emrouznejad & Alireza Naser Sadrabadi & Ali Morovati Sharifabadi, 2024. "A modified distance friction minimization model with optimistic–pessimistic target orientation for OECD sustainable performance measurement," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23113-23149, September.
    20. Thien-Vu Tran & Hosomi Shoichiro & Masayoshi Noguchi, 2023. "Inter-Jurisdictional Comparison of Public Asset Utilization in Tokyo Metropolitan Local Governments," Public Organization Review, Springer, vol. 23(1), pages 197-218, March.

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    More about this item

    Keywords

    Distance friction minimization; goals achievement; data envelopment analysis (DEA); efficiency-improving projection; local government finance; H79; R50;
    All these keywords.

    JEL classification:

    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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