Cost efficiency of selected transport companies of the Czech Republic – an application of data envelopment analysis

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JEL classification

• Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
• Allocative Efficiency; Cost-Benefit Analysis
• Semiparametric and Nonparametric Methods: General

Keywords

Allocative efficiency, cost efficiency, data envelopment analysis, technical efficiency, transport companies

Abstract

The paper analyses the total cost efficiency of the selected transport companies of the Czech Republic by means of data envelopment analysis (DEA). This method with using information on input prices and nature of returns to scale provides a detailed insight into the structure of potential inefficiency of the analyzed companies. Conclusions of the analysis in the identification of types of inefficiency of individual companies may be beneficial both for the business itself in terms of their orientation to the future, as well as in terms of emphasizing the role of DEA as an important tool in decision-making process of corporate governance.