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Hospital Cost Function In A Non-Market Health Care System

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Author Info
Daniel Bilodeau
Pierre-Yves Crémieux
Pierre Ouellette

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Abstract

This paper examines whether a competitive model of the firm appropriately describes the behavior of hospitals in a non-market environment. This test is based on the best database yet available in the hospital sector. We show that properties of the non-market hospitals'cost functions are compatible with short-term, but not long-term, cost-minimizing behavior. This is consistent with results of similar analyses in the U.S. hospital market and suggests that Québec hospitals, which operate in a non-market environment, might not behave fundamentally differently from their U.S. counterparts. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

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Publisher Info
Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 82 (2000)
Issue (Month): 3 (August)
Pages: 489-498
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Handle: RePEc:tpr:restat:v:82:y:2000:i:3:p:489-498

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  1. Simona VASILACHE & Mihaela Cornelia PREJMEREAN, 2008. "Estimation of the Romanian hospitals efficiency in relation to hospital market competition," Management & Marketing, Economic Publishing House, vol. 3(3), Autumn. [Downloadable!]
  2. Mike Smet, 2007. "Measuring performance in the presence of stochastic demand for hospital services: an analysis of Belgian general care hospitals," Journal of Productivity Analysis, Springer, vol. 27(1), pages 13-29, February. [Downloadable!] (restricted)
  3. Marcelin Joanis & David Boisclair & Claude Montmarquette, 2004. "La santé au Québec : des options pour financer la croissance," CIRANO Project Reports 2004rp-04, CIRANO. [Downloadable!]
  4. Benoît Dervaux & Gary D. Ferrier & Hervé Leleu & Vivian Valdmanis, 2004. "Comparing French and US hospital technologies: a directional input distance function approach," Applied Economics, Taylor and Francis Journals, vol. 36(10), pages 1065-1081, June. [Downloadable!] (restricted)
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