Measuring the Effi ciency of Public Road Transport Companies in the Slovak Republic USING DEA and SFA

Th e paper measures and compares the effi ciency of companies providing public road transport in the SlovakRepublic. For this purpose two rather complementary methods, namely data envelopment analysis (DEA) andstochastic frontier analysis (SFA), are used. An input-oriented slack based model under variable returns toscale is applied as a DEA effi ciency measure. Th e validity of DEA results is confi rmed by the stability analysisconsisting of re-calculation of DEA under diff erent combinations of inputs and outputs. Identifi ed effi cientdecision making unites are ranked using super-effi ciency. A SFA model is based on the well-known Cobb-Douglas function type, assuming normally distributed errors and half-normally distributed ineffi ciencies. Inorder to overcome the multicolinearity problem principal component analysis is applied. Finally, we identifytransport companies effi cient with respect to both methods.