지방재정력 측정을 위한 종합지표 산정의 신기법 = A Search for the Comprehensive Index Measuring Local Fiscal Capacity - Utilizing the Factor Analysis -

다국어 초록 (Multilingual Abstract)

The purpose of this study is to explore a new comprehensive index measuring local fiscal capacity.
There are two major problems in constructing a comprehensive index. One is how to transform individual index to relative index in comparable form. This study settles this problem by using standard score (z-score). Each individual index is transformed to relative index by standard score and each index's standard scores are summed up with each local government unit. This study names the sum of these standard scores 'the standardized comprehensive index'. The other problem in constructing a comprehensive index is how much weight should be assigned to each relative index in summing up individual index's value. This study tackles the problem by using factor score. Factor analysis extracts weights, named factor score coefficient (or factor weight), through correlation analysis for each indexes. This study names sum of these factor scores, which reflects individual index evenly, 'the factorized comprehensive index'.
Through correlation analysis between the comprehensive index and individual indexes, it turns out that these new indexes (particulary the factorized comprehensive index) are superior to existing comprehensive index such as 5-stage point system in terms of their ability to reflect individual index.
Judging from the superiority of new comprehensive indexes, particulary the factorized index, this new comprehensive index is recommended for the future study of local fiscal capacity.