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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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    References listed on IDEAS

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    1. Pekka Korhonen & Sari Stenfors & Mikko Syrjänen, 2003. "Multiple Objective Approach as an Alternative to Radial Projection in DEA," Journal of Productivity Analysis, Springer, vol. 20(3), pages 305-321, November.
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    4. Doyle, J & Green, R, 1993. "Data envelopment analysis and multiple criteria decision making," Omega, Elsevier, vol. 21(6), pages 713-715, November.
    5. Lidia Angulo-Meza & Marcos Lins, 2002. "Review of Methods for Increasing Discrimination in Data Envelopment Analysis," Annals of Operations Research, Springer, vol. 116(1), pages 225-242, October.
    6. Merja Halme & Tarja Joro & Pekka Korhonen & Seppo Salo & Jyrki Wallenius, 1999. "A Value Efficiency Approach to Incorporating Preference Information in Data Envelopment Analysis," Management Science, INFORMS, vol. 45(1), pages 103-115, January.
    7. Paul Windrum & Per Koch (ed.), 2008. "Innovation in Public Sector Services," Books, Edward Elgar Publishing, number 4030.
    8. Thanassoulis, E. & Dyson, R. G., 1992. "Estimating preferred target input-output levels using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 56(1), pages 80-97, January.
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    1. repec:eee:soceps:v:61:y:2018:i:c:p:102-113 is not listed on IDEAS
    2. 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).
    3. 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.
    4. repec:kap:jproda:v:48:y:2017:i:1:d:10.1007_s11123-017-0500-z is not listed on IDEAS
    5. 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.
    6. repec:rnp:ecopol:ep1757 is not listed on IDEAS
    7. Isabel Narbón-Perpiñá & Kristof De Witte, 2016. "Local governments’ efficiency: A systematic literature review – Part I," Working Papers 2016/20, Economics Department, Universitat Jaume I, Castellón (Spain).
    8. 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.
    9. 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.

    More about this item

    Keywords

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

    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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