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Directional distance function for FDH technologies with an application to Tunisian public hospitals

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Author Info

  • Arfa Chokri

    ()
    (INTES, University of Carthage, Tunisia)

  • Hervé Leleu

    (LEM-CNRS (UMR 8179), IÉSEG School of Management)

  • Ben Romdhane Habiba

    (INSP, Faculty of Medicine, Tunisia)

Abstract

Tunisian’s public hospitals have been often deemed inefficiency, yet unfortunately no empirical study has demonstrated the breadth and/or depth of this inefficiency. To address this issue, we develop a non parametric methodology to measure efficiency at patient level for five cardiology wards. This methodology is based on the estimation of the input directional distance function, using a recent developed linear form of free disposal hull model. Results show that, on average, each cardiology ward could save more than 50% of each input; whereas at the patient level, illness severity and patients’ profiles were associated with inefficiency. At the ward level, practice patterns and wards missions explain disparities on inefficiency. By defining sub-specializations or standard procedures for cardiology wards, we demonstrate where the public hospitals can save resources when treating these patients.

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Bibliographic Info

Paper provided by IESEG School of Management in its series Working Papers with number 2008-ECO-03.

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Length: 24 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:ies:wpaper:e200803

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Related research

Keywords: Directional Distance Function; Free Disposal Hull; Tunisian’s public hospitals;

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  1. Walter Briec & Kristiaan Kerstens & Philippe Venden Eeckaut, 2004. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Journal of Economics, Springer, vol. 81(2), pages 155-192, 02.
  2. Leleu, Herve, 2006. "A linear programming framework for free disposal hull technologies and cost functions: Primal and dual models," European Journal of Operational Research, Elsevier, vol. 168(2), pages 340-344, January.
  3. Simar, L. & Wilson, P.W., 1999. "Statistical Inference in Nonparametric Frontier Models: the State of the Art," Papers 9904, Catholique de Louvain - Institut de statistique.
  4. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
  5. Walter Briec & Kristiaan Kerstens & Philippe Vanden Eeckaut, 2006. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity (Journal of Economics 81(2):155–192)," Journal of Economics, Springer, vol. 87(3), pages 307-308, 04.
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