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The efficiency of health production: re-estimating the WHO panel data using parametric and non-parametric approaches to provide additional information

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Author Info

  • Bruce Hollingsworth

    (Health Economics Unit, Monash University, Melbourne, Australia)

  • John Wildman

    (Health Economics Unit, Monash University, Melbourne, Australia)

Abstract

The World Health Report 2000 focuses on the performance of health-care systems around the globe. The report uses efficiency measurement techniques to create a league table of health-care systems, highlighting good and bad performers. Efficiency is measured using panel data methods. This paper suggests that the WHO's estimation procedure is too narrow and that contextual information is hidden by the use of one method. This paper uses and validates a range of parametric and non-parametric empirical methods to measure efficiency using the WHO data. The rankings obtained are compared to the WHO league table and we demonstrate that there are trends and movements of interest within the league tables. We recommend that the WHO broaden its range of techniques in order to reveal this hidden information. Copyright © 2002 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.751
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 12 (2003)
Issue (Month): 6 ()
Pages: 493-504

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Handle: RePEc:wly:hlthec:v:12:y:2003:i:6:p:493-504

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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References

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  1. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
  2. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1989. "Production Frontiers With Cross-Sectinal And Time-Series Variation In Efficiency Levels," Working Papers 89-18, C.V. Starr Center for Applied Economics, New York University.
  3. Culyer, A. J. & Wagstaff, Adam, 1993. "Equity and equality in health and health care," Journal of Health Economics, Elsevier, vol. 12(4), pages 431-457, December.
  4. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  5. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  6. Bruce Hollingsworth & P.J. Dawson & N. Maniadakis, 1999. "Efficiency measurement of health care: a review of non‐parametric methods and applications," Health Care Management Science, Springer, vol. 2(3), pages 161-172, July.
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Cited by:
  1. Bruce Hollingsworth & Chandra Shah & Michael Long & Jeff Richardson, 2005. "Modelling the economic impact of international movements in the health labour force," Centre for Health Economics Working Papers 152/05, Monash University, Centre for Health Economics.
  2. Ravallion, Martin, 2005. "On Measuring Aggregate "Social Efficiency."," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 273-92, January.
  3. R. Amy Puenpatom & Robert Rosenman, 2006. "Efficiency of Thai provincial public hospitals after the introduction of National Health Insurance Program," Working Papers 2006-2, School of Economic Sciences, Washington State University.
  4. Pablo Hernández de Cos & Enrique Moral-Benito, 2011. "Eficiencia y regulación en el gasto sanitario en los países de la ocde," Banco de España Occasional Papers 1107, Banco de España.
  5. Grignon, Michel, 2008. "The role of education in health system performance," Economics of Education Review, Elsevier, vol. 27(3), pages 299-307, June.
  6. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2010. "A Stochastic Frontier Model for Discrete Ordinal Outcomes: A Health Production Function," Department of Economics - Working Papers Series 1092, The University of Melbourne.
  7. Jean Spinks & Bruce Hollingsworth, 2005. "Health production and the socioeconomic determinants of health in OECD countries: the use of efficiency models," Centre for Health Economics Working Papers 151/05, Monash University, Centre for Health Economics.

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