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Evaluating the Efficiency and Technology Gap of Local Public Enterprises Using a Metafrontier Super-Efficiency Model

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2017, 28(1), pp.167-191
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

Yoo, Keum-Rok 1

1군산대학교

Accredited

ABSTRACT

This article analyzes the efficiency and technology gap of 67 facilities management corporations financed by 67 primary local governments in 2013 with nonradial metafrontier and group frontier super-efficiency models, tests for differences in efficiency and technology gap, and then suggests policy and academic implications. Summarizing analytic results, first, efficient corporations are 10, while inefficient ones are 57. Second, there are no technology gaps in 11 corporations, whereas there are technology gaps in 56 corporations. Third, the group frontier super-efficiency of corporations invested by county governments is higher than that of corporations funded by city and borough governments, while the technology gap of corporations capitalized by county governments is larger than that of corporations financed by city and borough governments. These results indicate that the management technology of corporations invested by county governments is lower than that of corporations financed by city and borough governments. Finally, suggesting policy and academic implications, local autonomous entities should consider the options for setting the standard costs of contracting-out projects by measuring the efficiency and technology gap of local public facilities management corporations, and it is useful to utilize the metafrontier and group frontier super-efficiency model in order to analyze the efficiency and technology gap of public enterprises.

Citation status

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