지방교부세의 표준행정수요 산정방식에 관한 연구

Abstract

This paper presents a better idea in estimating a standard administrative demand, which is a key factor of allocation of local shared tax among local governments. The demands for 31 items including administrative works, social welfare, road improvements, and so on needs to be estimated for three types of local governments, si, kun, and ku. By introducing dummy variables for characterizing each type of governments and selecting explanatory variables logically, the paper shows a way to improve econometric results. It implies that in estimating a standard administrative demand, the current method categorizing types of local governments arbitrarily should be substituted with a logical one.