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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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Executive Summary

Data Envelopment Analysis (DEA) has become an established tool in comparative analyses of efficiency strategies in both the public and the private sector. The aim of this paper is to present and apply a newly developed, adjusted 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-improving projection model in conventional DEA.

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