地方財政診斷指標에 관한 硏究

A Study on the Diagnosis Index of Local Public Finance

The purpose of this paper is to develop diagnosis index of local public finance and rank the various local self-governing bodies according to the value of this index. Cities, counties and metropolitan districts both in 1995 and in 1996 have been analyzed. Variables which reflect local public finance have been gathered and factor analysis has been applied to extract the representative index. And then to construct the composite index, the standardized scores of each representative index have been calculated and summed up. To check the necessity of classification of local government according to its population size, discriminant analysis has been applied. The empirical result shows that in almost all the cases there is no need to classify local government according to population size when we diagnose local public finance.