Evaluating Administrative Efficiency Change in the Post-Merger Period

This article analyzes the change in municipal administrative efficiency in the post-merger period using the data of 92 municipalities in Ibaraki prefecture for the period 1979–2004. For this purpose, the authors employ a nonparametric programming method to compute a data envelopment analysis (DEA)/Malmquist indices (MI). These indices are decomposed into two component measures, namely, catch-up (CU) and frontier shift (FS) indices. The authors found that the administrative efficiency in Ibaraki prefecture in the post-merger period was monotonically regressed; however, the efficiency scores of merging municipalities were found to be higher than those of nonmerging ones. Scale change did not necessarily contribute to an efficiency change in the post-merger period. In the short run, scale affected Tsukuba city, which was formed by consolidating smaller municipalities.