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Comparing French and US hospital technologies: a directional input distance function approach

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  • Benoit Dervaux
  • Gary Ferrier
  • Herve Leleu
  • Vivian Valdmanis

Abstract

French and US hospital technologies are compared using directional input distance functions. The aggregation properties of the directional distance function allow comparison of hospital industry-level performance as well as standard firm-level performance with regard to productive efficiency. In addition, the underlying constituents of efficiency - in the short run, congestion and technical inefficiency, and in the long run, scale inefficiency - are analysed by decomposing the overall measure. By virtue of using the directional distance function, it is also possible to obtain an estimate of a lower bound on allocative inefficiency. It is found that French and US hospitals use quite different technologies. Long run scale inefficiencies cause most of the French hospitals' inefficiency, while short run technical inefficiency is the main source of overall productive inefficiency in the US hospitals.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 10 ()
Pages: 1065-1081

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Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1065-1081

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References

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  1. Yutaka Imai & Stéphane Jacobzone & Patrick Lenain, 2000. "The Changing Health System in France," OECD Economics Department Working Papers 269, OECD Publishing.
  2. Cremieux, Pierre-Yves & Ouellette, Pierre, 2001. "Omitted variable bias and hospital costs," Journal of Health Economics, Elsevier, vol. 20(2), pages 271-282, March.
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  5. Ho, Vivian & Hamilton, Barton H., 2000. "Hospital mergers and acquisitions: does market consolidation harm patients?," Journal of Health Economics, Elsevier, vol. 19(5), pages 767-791, September.
  6. Walter Briec & Kristiaan Kerstens & Hervé Leleu & Philippe Eeckaut, 2000. "Returns to Scale on Nonparametric Deterministic Technologies: Simplifying Goodness-of-Fit Methods Using Operations on Technologies," Journal of Productivity Analysis, Springer, vol. 14(3), pages 267-274, November.
  7. Ulf-G. Gerdtham & Mickael Lothgren, 2001. "Health system effects on cost efficiency in the OECD countries," Applied Economics, Taylor & Francis Journals, vol. 33(5), pages 643-647.
  8. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
  9. Theo Hitiris & John Nixon, 2001. "Convergence of health care expenditure in the EU countries," Applied Economics Letters, Taylor & Francis Journals, vol. 8(4), pages 223-228.
  10. Parkin, David & McGuire, Alistair & Yule, Brian, 1987. "Aggregate health care expenditures and national income : Is health care a luxury good?," Journal of Health Economics, Elsevier, vol. 6(2), pages 109-127, June.
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Cited by:
  1. Kittelsen, Sverre A.C. & Persson, Benny Adam & Rehnberg, Clas & Anthun, Kjartan S. & Goude, Fanny & Rättö, Hanna & Hope, Øyvind & Häkkinen, Unto & Medin, Emma & Kalseth, Birgitte & Kilsmark, Janni, 2014. "Decomposing the productivity differences between hospitals in the Nordic countries," HERO On line Working Paper Series 2013:4, Oslo University, Health Economics Research Programme.
  2. Emma Medin & Kjartan Anthun & Unto Häkkinen & Sverre Kittelsen & Miika Linna & Jon Magnussen & Kim Olsen & Clas Rehnberg, 2011. "Cost efficiency of university hospitals in the Nordic countries: a cross-country analysis," The European Journal of Health Economics, Springer, vol. 12(6), pages 509-519, December.
  3. Rym Ayadi & Jean-Philippe Boussemart & Hervé Leleu & Dhafer Saidane, 2010. "Mergers & Acquisitions in European Banking Higher productivity or better synergy among business lines?," Working Papers 2011-ECO-03, IESEG School of Management.
  4. Jean-Philippe Boussemart & Hervé Leleu, 2008. "Comparing TFP Catching-up and Capital Deepening in US and European Growths: A Directional Distance Function Approach," Working Papers 2008-ECO-01, IESEG School of Management.
  5. Bruce Hollingsworth, 2008. "The measurement of efficiency and productivity of health care delivery," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1107-1128.
  6. Varabyova, Yauheniya & Schreyögg, Jonas, 2013. "International comparisons of the technical efficiency of the hospital sector: Panel data analysis of OECD countries using parametric and non-parametric approaches," Health Policy, Elsevier, vol. 112(1), pages 70-79.
  7. Rym Ayadi & Jean-Philippe Boussemart & Hervé Leleu & Dhafer Saidane, 2013. "Mergers and Acquisitions in European banking higher productivity or better synergy among business lines?," Journal of Productivity Analysis, Springer, vol. 39(2), pages 165-175, April.
  8. Carlos Pestana Barros & Stephanie Leach, 2006. "Performance evaluation of the English Premier Football League with data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1449-1458.

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