Measuring the Indebtedness of Taiwan’s Regional Government: The Stochastic Frontier Approach

• Main Author: 林志勳
• Other Authors: 張瑞娟
• Format: Others
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/93570011334411989277

碩士 === 國立嘉義大學 === 應用經濟學系研究所 === 101 === This thesis measures Taiwan’s regional government indebtedness regarding specific regional characteristics. To estimate the potential maximum of regional government indebtedness in Taiwan from 2002 to 2010, we extend the stochastic frontier debt production function proposed by Nkamleu and Nanfosso (2007) by incorporating the heteroscedasticity and non-monotonic efficiency effects presented by Wang (2002, 2003). Furthermore, this thesis compares the average effect and marginal effect with the indebtedness index of both regional debt burden and regional debt per capita, respectively. By emphasizing specific regional population structure characteristics, the indebtedness index yields a considerably different ranking. This result demonstrates the application of the stochastic frontier approach and elucidates the implications of the fiscal policy implemented by Taiwan’s central government.