Iran Railway Efficiency Analysis, Using DEA: An International Comparison

Efficiency measurement is critical for industries where firms do not face strong competition, as we cannot rely on the market to discipline the firmsʹ efficiency. Railway is a typical example. At the same time the fact that railway produces multiple outputs using the common set of inputs calls for a delicate and sophisticated treatment in measuring the efficiencies. In this article, the DEA method is used to determine RAI (RahAhan Iran) efficiency comparison with other countries. The scale efficiency rate of RAI was calculated and showed the percentage of 0.564. Finally, by analyzing this performance, a suitability in inputs and outputs for reaching the efficiency boundary was resulted.