The Korea Local Administration Review

The purpose of this study is to review the measuring of local governments' relative efficiency using Data Envelope Analysis. While existing research critically reviews the theoretical limits, this study identifies the problems in the actual measurement and assessment and proposes some alternatives. This study identifies the following problems: The first problem is caused by expanding the scope of the concept of efficiency; the second is one of selecting a unit for the input-output variable; third is the need to make a selection in the tree of affairs related to the selection of measurement variables; fourth is the problem of time of the object of measurement in a single year analysis; fifth concerning the distinctive power, an analysis dividing the input and output variables is preferable to an integrated analysis; and finally, in relation to the post-analysis, this study suggests the need for the bootstrap method, whish is a non-parameter method.