The Efficiency Of Local Governments And Its Influence Factors

Abstract Assessing the relative efficiency of local governments using Data Envelopment Analysis which are used as input aggregate total expenditure per capita and Local Governvent Output Indicator LGOI is used as an aggregate output of each local government. Results showed that local governments can improve the services performance without increasing the spending. Furthermore the efficiency scores is associated with sosio-economic variables and demographic by using analysis of Tobit the results show that the variable fiscal as transfer funds and silpa negatively and significantly to the local government efficiency while the variable population density and degree of fragmentation of political parties and positive effect significantly to the local government efficiency.