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Nonparametric analysis of returns to scale in the US hospital industry Author info | Abstract | Publisher info | Download info | Related research | Statistics Paul W. Wilson (Department of Economics, University of Texas, Austin, USA)
Kathleen Carey (Management Science Group, US Department of Veterans Affairs, Bedford, USA, and School of Public Health, Boston University, USA)
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This paper presents new estimates of scale economies for US hospitals. We show that the common translog specification of hospital costs is a misspecification, and employ nonparametric, local linear estimation with both continuous and discrete covariates. A bootstrap method is used to provide inferences regarding ray scale economies and expansion path scale economies for a large sample of hospitals covering 1984-1996. We find evidence of changes in the structure of hospital costs over the sample period, as well as evidence of locally optimal hospital sizes. Copyright © 2004 John Wiley & Sons, Ltd.
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics .
Volume (Year): 19 (2004)
Issue (Month): 4 ()
Pages: 505-524
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Handle: RePEc:jae:japmet:v:19:y:2004:i:4:p:505-524Contact details of provider: Web page: http://www.interscience.wiley.com/jpages/0883-7252/
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
R. Alton Gilbert & David C. Wheelock & Paul W. Wilson, 2002.
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Working Papers
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"Cost efficiency of Slovenian water distribution utilities: an application of stochastic frontier methods ,"
Journal of Productivity Analysis ,
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Teresa D. Harrison, 2007.
"Consolidations and closures: an empirical analysis of exits from the hospital industry ,"
Health Economics ,
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