Cost-efficiency of Japanese local governments: effects of decentralization and regional integration

DOI Web Site 被引用文献3件 参考文献26件 オープンアクセス
  • Akihiro Otsuka
    Central Research Institute of Electric Power Industry, Socio-economic Research Center, Chiyoda-ku, Tokyo, Japan
  • Mika Goto
    Tokyo Institute of Technology, Graduate School of Decision Science and Technology, Meguro-ku, Tokyo, Japan
  • Toshiyuki Sueyoshi
    New Mexico Institute of Mining and Technology, Management Department, Socorro, NM, USA

説明

Stochastic frontier analysis is used to examine the cost-efficiency of Japanese local governments at a prefectural level, corresponding to states in the United States. The issue of cost-efficiency has two policy concerns for fiscal decentralization: one is whether fiscal transfers from central government to local governments influence cost-efficiency; the other is whether the size of the local population influences cost-efficiency. This study empirically confirms that the fiscal transfers have a negative effect. In contrast, population size has a positive effect. The two findings may suggest that Japanese local governments can improve their cost-efficiencies by both reducing the amount of fiscal transfers via decentralization and increasing a population growth via regional integration.

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