Abbas Arabmazar; Seyyed Yahya Mousavi
Volume 10, Issue 37 , July 2010, , Pages 139-165
Abstract
According to the definition, efficiency is the ratio of outputs of an organization to its inputs for which there are parametric and non-parametric ways of calculation. In non-parametric method which forms the base of calculations in this research, efficiency is evaluated through a series of mathematical ...
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According to the definition, efficiency is the ratio of outputs of an organization to its inputs for which there are parametric and non-parametric ways of calculation. In non-parametric method which forms the base of calculations in this research, efficiency is evaluated through a series of mathematical optimizations. In this research tax organization of each province is considered as a decision maker unit which posesses several inputs and outputs. In order to compare the efficiency of different provinces of the country, they are divided into two groups on the basis of their stages of development and their shares in total tax payments. Efficiency of tax organizations of provinces is measured by using Data Envelopment Analysis procedure (DEA), and the results show that in a period of 2005-2006, there has been an Average efficiency of 73% for developed provinces and 89.5 % for less developed provinces. Regarding the figures related to the efficiency of provinces, we consider the difference between efficiency of provinces and efficiency of 100%, as their shortcoming in tax
capacity achievement. In other words, efficiency of provinces shows that they are from legal potential capacity of tax collection. So, legal tax potential of provinces are calculated on the basis of above mentioned figures.
