THE STUDY OF FACTORS AFFECTING COST EFFICIENCY OF ISFAHAN PROVINCE MUNICIPALITIES: STOCHASTIC FRONTIER ANALYSIS APPROACH

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RANJBAR HOMAYOUN; SALEHI ELAHE

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Journal: IRANIAN JOURNAL OF APPLIED ECONOMICS Year:2016 | Volume:5 | Issue:- Page(s): 21-35

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Title

THE STUDY OF FACTORS AFFECTING COST EFFICIENCY OF ISFAHAN PROVINCE MUNICIPALITIES: STOCHASTIC FRONTIER ANALYSIS APPROACH

Author(s)

RANJBAR HOMAYOUN | SALEHI ELAHE | Issue Writer Certificate

Keywords

MUNICIPALITYQ2

COST EFFICIENCYQ2

STOCHASTIC FRONTIER ANALYSISQ2

Abstract

The important role of municipalities in the national economy is the implementation of cost management techniques and also, it is one of the main resistance economics ’ topics, so it would be necessary to measure the efficiency scores for municipalities in order to plan and better performance. Therefore, the present study estimates the COST EFFICIENCY of 95 municipalities in the Isfahan province and identifies the effective factors on it by STOCHASTIC FRONTIER ANALYSIS approach and applying maximum likelihood method. And, the Battese and Coelli Model (1995) is used. Results indicate that the elasticity of total cost to the municipalities’ outputs is elastic and the elasticity of total cost to the price-hectares change in each tasks of municipal services, administrative services and civil constructional services, is inelastic. On the other hand, the COST EFFICIENCY of Isfahan province municipalities has a direct relationship with the ratio of current cost to total cost and with the ratio of total salary cost to total income and has a negative relationship with education. The average COST EFFICIENCY scores for Isfahan province municipalities is 66.44 percent during the period 2009-2011 (1390-1388 corresponding to Iranian calendar).

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APA: Copy

RANJBAR, HOMAYOUN, & SALEHI, ELAHE. (2016). THE STUDY OF FACTORS AFFECTING COST EFFICIENCY OF ISFAHAN PROVINCE MUNICIPALITIES: STOCHASTIC FRONTIER ANALYSIS APPROACH. IRANIAN JOURNAL OF APPLIED ECONOMICS, 5(-), 21-35. SID. https://sid.ir/paper/201961/en

Vancouver: Copy

RANJBAR HOMAYOUN, SALEHI ELAHE. THE STUDY OF FACTORS AFFECTING COST EFFICIENCY OF ISFAHAN PROVINCE MUNICIPALITIES: STOCHASTIC FRONTIER ANALYSIS APPROACH. IRANIAN JOURNAL OF APPLIED ECONOMICS[Internet]. 2016;5(-):21-35. Available from: https://sid.ir/paper/201961/en

IEEE: Copy

HOMAYOUN RANJBAR, and ELAHE SALEHI, “THE STUDY OF FACTORS AFFECTING COST EFFICIENCY OF ISFAHAN PROVINCE MUNICIPALITIES: STOCHASTIC FRONTIER ANALYSIS APPROACH,” IRANIAN JOURNAL OF APPLIED ECONOMICS, vol. 5, no. -, pp. 21–35, 2016, [Online]. Available: https://sid.ir/paper/201961/en

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