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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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  • 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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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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  1. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
  2. 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, Springer, vol. 2(3), pages 161-172, July.
  3. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, INFORMS, vol. 39(10), pages 1261-1264, October.
  4. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1989. "Production Frontiers With Cross-Sectinal And Time-Series Variation In Efficiency Levels," Working Papers, C.V. Starr Center for Applied Economics, New York University 89-18, C.V. Starr Center for Applied Economics, New York University.
  5. Culyer, A. J. & Wagstaff, Adam, 1993. "Equity and equality in health and health care," Journal of Health Economics, Elsevier, Elsevier, vol. 12(4), pages 431-457, December.
  6. 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, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
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Cited by:
  1. Ravallion, Martin, 2005. "On Measuring Aggregate "Social Efficiency."," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 53(2), pages 273-92, January.
  2. Pablo Hernández de Cos & Enrique Moral-Benito, 2011. "Health care expenditure in the oecd countries: efficiency and regulation," Banco de Espa�a Occasional Papers 1107, Banco de Espa�a.
  3. 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, Elsevier, vol. 112(1), pages 70-79.
  4. Hu, Hsin-Hui & Qi, Qinghui & Yang, Chih-Hai, 2012. "Analysis of hospital technical efficiency in China: Effect of health insurance reform," China Economic Review, Elsevier, Elsevier, vol. 23(4), pages 865-877.
  5. 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, The University of Melbourne 1092, The University of Melbourne.
  6. Sharon Hadad & Yossi Hadad & Tzahit Simon-Tuval, 2013. "Determinants of healthcare system’s efficiency in OECD countries," The European Journal of Health Economics, Springer, Springer, vol. 14(2), pages 253-265, April.
  7. Francesco Grigoli & Javier Kapsoli, 2013. "Waste Not, Want Not," IMF Working Papers 13/187, International Monetary Fund.
  8. Kerstens, Kristiaan & Van de Woestyne, Ignace, 2014. "Comparing Malmquist and Hicks–Moorsteen productivity indices: Exploring the impact of unbalanced vs. balanced panel data," European Journal of Operational Research, Elsevier, Elsevier, vol. 233(3), pages 749-758.
  9. Pablo Cos & Enrique Moral-Benito, 2014. "Determinants of health-system efficiency: evidence from OECD countries," International Journal of Health Care Finance and Economics, Springer, Springer, vol. 14(1), pages 69-93, March.
  10. R. Amy Puenpatom & Robert Rosenman, 2006. "Efficiency of Thai provincial public hospitals after the introduction of National Health Insurance Program," Working Papers, School of Economic Sciences, Washington State University 2006-2, School of Economic Sciences, Washington State University.

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