Estimation of technical efficiency municipalities Iran case study: Municipal provincial centers nationwide

People in all ages and times have been faced with the problem of scared resources and facilities; despite of the sciences and technologies they are still limited in resources. Therefore, organizations and institutions are forced to use their limited resources in the most efficient ways. In this study, the technical efficiencies of municipals in 30 provinces of Iran for the period of 2006-2008 is analyzed. The technical efficiency of each municipal is analyzed to subdivide the municipalities by efficiency. Holding the inputs total revenues, the number of personnel and area services constant; the increase in the urban development costs is calculated applying a non-parametric method of DEA technical efficiency under fixed and variable returns to scale. The estimated results indicate that less than 50% of the municipals are surrounded with complete technical efficiencies and they may be used as a model for inefficient ones. Based on the method of variable returns to scale and the output- oriented; the results also show that Ahvaz, Ilam, Kord, Qazvin, Tehran and Yasouj municipalities are a 100 percent efficient and they require no change in their inputs and outputs. On the other hand, Arak, Ardebil, Bandar Abbas, Bojnourd, Bushehr, Gorgan, Hamadan, Kerman, Khorram Abad, Qum, Rasht, Sanandaj, Sari, Shiraz, Urmia, Zahedan and Zanjan municipalities are all inefficient and they have never reached a complete efficiency.