REVENUE EFFICIENCY IN THE CZECH REPUBLIC AND SLOVAKIA.

This paper applies the DEA to evaluate revenue efficiency using the traditional (TRE) and new (NRE) model. We show how to make the relevant calculations in RStudio and discuss application in the banking area. Using balanced panel data from 2008 to 2017, we compared the efficiency of Czech and Slovak banks. The results showed that the TRE ranged from 24.15% to 100%, and NRE ranged from 29.68% to 100%. The results showed that a higher efficiency was in the case of banks located in Czech Republic and pointed to the fact that large banks were the most efficient. The results of nonparametric test for equality of densities pointed to the fact that it depends on selected methodology, bank size and also the location of banks. The results were also verified by the GMM model, which signalized, that the level of efficiency depended mainly on the efficiency in the previous year, but also on the location of the bank in the new revenue model. [ABSTRACT FROM AUTHOR]