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1 Empirical Analysis of the Efficiency of the Broadcasting Industry: Verification of Regionalism and a Proposal ABSTRACT Reforms in the broadcasting industry have recently been discussed and proposed, and deregulation and the revision of the Broadcasting Law have already been implemented in such a way that restructuring the market through establishing holding companies and M&A of broadcasting stations have already take place. However, these changes are insufficient for a thorough going reform of the private broadcasting industry. This paper based on rigorous theoretical analysis discusses possible reforms and provides fundamentals for the realignment toward more adequate systems. In so doing, this paper examines the efficiency of middle-sized so-called main broadcasting stations in the six major regions using DEA (Data Envelopment Analysis) and empirically identifies factors which determine efficiency by the Tobit model. Based on these empirical analyses, raising the in-house production ratio and the deregulation of the limitation for broadcasting services within one prefecture are required in order to fulfill requirements such as plurality, diversity and locality in the age of convergence. * Noriko WAKIHAMA Vol.31 No.1 (2013) 15

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14 Asai, S. (2004) Scale economies and optimal size in the Japanese broadcasting market, OtsumaJournal of Social Information Studies, 13, pp Charnes, A., W. W. Cooper, and E. Rhodes (1978) Measuring the Efficiency of Decision Making Units, European Journal of Operational Research, Vol. 2, pp Kasuga, N, and M.Shishikura (2006) Determinants of profit in the broadcasting industry: Evidence from Japanese micro data, Information Economics and Policy, Vol. 18, Issue 2, pp Ramalho, E. A., J. J. S. Ramalho, and P. D. Henriques (2010) Fractional regression models for second stage DEA efficiency analyses, Journal of Productivity Analysis,Vol. 34, Issue 3, pp

15 Rahman, M. A,, and J. A. Captiman (2012) Can more use of supporting primary care health practitioners increase efficiency of health clinics? Evidence from California's San Joaquin Valley, J Health Care Finance, 2012 Spring,38(3), pp Tsuji, M., and Y. Akematsu (2009), A Panel Data Analysis of Diffusion of Japanese FTTH, Proceedings of 37th TPRC Conference, Arlington, USA. Tone, K. (2001) A Slacks-based measure of efficiency in data envelopment analysis, European Journal of Operational Research, Vol. 130, pp Zeng, W., D. S. Shepard, J. Chilingerian, and C. Avila- Figueroa (2012) How much can we gain from improved efficiency? An examination of performance of national HIV/AIDS programs and its determinants in low- and middle-income countries, BMC Health Services Research, 2012 Mar 24;12:74. Vol.31 No.1 (2013) 29

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