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Efficiency in government health spending: a super slacks-based model

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  • Yi-Chung Hsu

Abstract

This article evaluates the performance of health expenditure and demonstrates how productivity has changed over time for 46 selected countries in Europe and Central Asia by applying three nonparametric data envelopment analysis models that assume variable returns-to-scale, slacks-based measures (SBM), and Super SBM, respectively. Our results show that countries could have increased output by 1.2 % based on existing levels of inputs. The finding of decreased productivity growth is related to technical change, and super efficiency is found to provide a good framework for ranking efficient units. Based on the Super SBM model, we obtain proper scores and find the most efficient country. Copyright Springer Science+Business Media B.V. 2014

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  • Yi-Chung Hsu, 2014. "Efficiency in government health spending: a super slacks-based model," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 111-126, January.
    • Handle: RePEc:spr:qualqt:v:48:y:2014:i:1:p:111-126
    DOI: 10.1007/s11135-012-9753-9
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    More about this item

    Keywords

    Data envelopment analysis; Health expenditure; Efficiency; Productivity; Slack-based measure; H50; E62; C14;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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