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Estimating the efficiency of the system of healthcare financing in achieving better health

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Author Info
S. Grosskopf  
S. Self  
O. Zaim
Abstract

This paper contributes to the effort to model and measure how the method of financing of health expenditure affects the efficiency with which better health can be achieved. The focus is on the health system efficiency at the country level, which provides an alternative to the work done in the WHO in this regard. The approach uses frontier techniques as in the WHO studies; however the paper appeals to the economic index number theory of quantity and productivity indexes, which have well-established axiomatic properties, and provides a means for aggregating multiple health output proxies without having to attach arbitrary weights. This allows the proposal of a specification that embeds health sector performance in a broader index of economic inputs and outputs and allows for comparisons across countries and time.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 13 (July)
Pages: 1477-1488
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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1477-1488

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  1. William D. Nordhaus, 2002. "The Health of Nations: The Contribution of Improved Health to Living Standards," Cowles Foundation Discussion Papers 1355, Cowles Foundation, Yale University. [Downloadable!]
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  2. Ellen Meara, 2001. "Why is Health Related to Socioeconomic Status?," NBER Working Papers 8231, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Pritchett, Lant & Summers, Lawrence H., 1993. "Wealthier is healthier," Policy Research Working Paper Series 1150, The World Bank. [Downloadable!]
  4. Deon Filmer & Lant Pritchett, 1999. "The Effect of Household Wealth on Educational Attainment: Evidence from 35 Countries," Population and Development Review, The Population Council, Inc., vol. 25(1), pages 85-120. [Downloadable!] (restricted)
  5. Michael Grossman, 1973. "The Correlation Between Health and Schooling," NBER Working Papers 0022, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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