Application of Data Envelopment Analysis to assess the efficiency using income aspect in the local government

KGROUND AND OBJECTIVES: Given the tremendous progress of today's societies and the expectations of the people from public institutions that are increasing day by day, having complex organizations is inevitable. As a non-parametric border method, data envelopment analysis approach has been presented as a relative assessment tool to evaluate performance assessment of The Municipality of Tehran with ۲۲ districts. This paper aims to assess all ۲۲ districts of Tehran in terms of cash and sustainable income. METHODS: In this paper, BCC output-oriented model has been opted to employ DEA for the performance assessment of Tehran Municipality in ۲۰۲۰. In order to formulate optimal programs, especially in the income programs of the regions, it is necessary to consider the specific conditions and characteristics of each region. Therefore, while cash and sustainable incomes have been selected as the model's output, number of building permits, number of inhabitants, number of housing deals, and the price of the residential unit have been considered as inputs of BCC-O model. FINDINGS: BCC-O approach was implemented to classify ۲۲ districts of the Municipality of Tehran. The findings revealed that ۵۰ percent of districts namely ۱, ۶, ۹, ۱۲, ۱۶, ۱۷, ۱۸, ۱۹, ۲۰, ۲۱, ۲۲ operated efficiently. Also, it was determined that there has not been a proportional analogy between cash and sustainable income in comparison with input indices. For such areas an alternative program is proposed using the method. CONCLUSION: Due to the continuous increase of Tehran's county population and consequently the increase of citizens' requests and the lack of resources and facilities in Tehran Municipality on the other hand, it is necessary to formulate and implement the annual plans of the regions with higher accuracy. Given that at present the annual plan of cash and stable income of regions are based on past years' performance ignoring specific conditions of each region, so it is possible to evaluate a more real and precise value of income plan through DEA model with considering the conditions of each district. Decision-makers of inefficient districts can modify the approved plans of cash income and sustainable income base on the optimal value of the proposed data envelopment analysis model. Based on BCC-O model, guidelines are provided for transferring inefficient districts from the current state to the efficient ones. These values can be the basis for compiling the revenue plan for next year in districts of the Municipality of Tehran.

Keywords:

BCC-O model , Cash income , Data Envelopment Analysis , The Municipality of Tehran , performance assessment , Sustainable income