Cost efficiency of each factor in local e-governments

Abstract

Targeting e-local governments of Japan, in this study, we attempted to present a cost analysis model for clarifying the influence of each information system factor, namely cost efficiency. By using this model, we verified policies associated with streamlining of e-local governments. Our verification results confirmed that sharing information system jointly launched and operated among several municipalities, as aimed by government policies, would decrease the cost of information systems. On the other hand, it was also shown clearly that use of customised packages, contrary to the policy's goal, would not decrease the cost. This study also showed that while population would increase the cost of information systems, this cost would not increase equally as changes in population occur, and the information system cost per month would decrease as the same information system is used longer.