ECONOMIC AND FUNCTIONAL EFFICIENCY OF TERRITORIAL ORGANIZATION OF BOSNIA AND HERZEGOVINA
This paper presents a comprehensive assessment of territorial organization efficiency of the Federation of Bosnia and Herzegovina. During assessment, an output-oriented Charnes, Cooper and Rhods (CCR) and Banker, Charnes and Cooper (BCC) models have been applied on data representing the financial, demographic and functional capacities. Furthermore, this paper analyzes the efficiency of the territorial organization of the Federation of Bosnia and Herzegovina through years 1990, 2000 and 2010. Results of CCR and BCC models show that the Local Government Unit (LGU) efficiency has been significantly reduced. Paper consists of Introduction, Efficiency of the territorial organization of the Federation of Bosnia and Herzegovina, CCR model, Inefficiency of LGU, Conclusion, References.