Efficient Policy Selection Taking Regional Characteristics into Consideraion
Policy selection (政策選択)
Optimal investment in each different region (地域別投資最適化)
Principal component analysis & stepwise multiple regression (主成分ステップワイズ重回帰法)
Linear programmmg (線形計画法)
In the streams of decentralization，local governments are asked to think out their policy-making efficiently. On the other hand, the central government has to select the national policies and to allocate the budget not by means of a uniform allocation policy，but based on the actual conditions of each region. The first purpose of this paper is to analyze the difference in efficiency when we change the combination and/or the weight of political categories，reflecting each region's productive resource stocks and characteristics. Secondly，the paper shows how we can optimize the fiscal allocation，considering each region's productive resource stocks and characteristics，using the results of calculation to determine the efficiency of agricultural investment. The results of these analyses show that the policy-making which takes regional characteristics into consideration is more efficient and rational than that of a uniform allocation policy. This analysis will be extended to include other policy selections in the national and local budgets excluding a pure public goods.
Departmental Bulletin Paper