A Comparative Analysis of Efficiency between Firms Power Production in Iran

The efficiency and productivity measuring models have changed a lot in past decade, and strong body of theories and software's have been developed. In this article, first we review microeconomic theories about efficiency and then explain two major efficiency measuring models include data envelopment analysis (DEA) and SFA.Recent arguments about efficiency criteria start with studies of Coopman and Farrell in 1951. He argues that the issue of economic efficiency measuring in an industry is important from two aspects: one, economy theories and two, for purpose of economic policy making. Economic planning applications in particular industries, have a significant effect on expecting more outcomes without allocating more incomes and resources (efficiency definition).