IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/5751.html
   My bibliography  Save this paper

A hybrid approach to efficiency measurement with empirical illustrations from education and health

Author

Listed:
  • Wagstaff, Adam
  • Wang, L. Choon

Abstract

Inefficiency is commonplace, yet exercises aimed at improving provider performance efforts to date to measure inefficiency and use it in benchmarking exercises have not been altogether satisfactory. This paper proposes a new approach that blends the themes of Data Envelopment Analysis and the Stochastic Frontier Approach to measure overall efficiency. The hybrid approach nonparametrically estimates inefficiency by comparing actual performance with comparable real-life"best practice"on the frontier and could be useful in exercises aimed at improving provider performance. Four applications in the education and health sectors are used to illustrate the features and strengths of this hybrid approach.

Suggested Citation

  • Wagstaff, Adam & Wang, L. Choon, 2011. "A hybrid approach to efficiency measurement with empirical illustrations from education and health," Policy Research Working Paper Series 5751, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5751
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/08/03/000158349_20110803110203/Rendered/PDF/WPS5751.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Léopold Simar & Paul Wilson, 2000. "Statistical Inference in Nonparametric Frontier Models: The State of the Art," Journal of Productivity Analysis, Springer, vol. 13(1), pages 49-78, January.
    2. Afonso, Antonio & St. Aubyn, Miguel, 2005. "Non-Parametric Approaches to Education and Health Efficiency in OECD Countries," Journal of Applied Economics, Universidad del CEMA, vol. 8(2), pages 1-20, November.
    3. Deller, Steven C. & Rudnicki, Edward, 1993. "Production efficiency in elementary education: The case of Maine public schools," Economics of Education Review, Elsevier, vol. 12(1), pages 45-57, March.
    4. Thomas Fuchs & Ludger Wößmann, 2008. "What accounts for international differences in student prformance? A re-examination using PISA data," Studies in Empirical Economics, in: Christian Dustmann & Bernd Fitzenberger & Stephen Machin (ed.), The Economics of Education and Training, pages 209-240, Springer.
    5. Andreas Ammermueller, 2007. "PISA: What makes the difference?," Empirical Economics, Springer, vol. 33(2), pages 263-287, September.
    6. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 01 Feb 2018.
    7. Andrew Worthington, 2001. "An Empirical Survey of Frontier Efficiency Measurement Techniques in Education," Education Economics, Taylor & Francis Journals, vol. 9(3), pages 245-268.
    8. Crampes, Claude & Hollander, Abraham, 1995. "Duopoly and quality standards," European Economic Review, Elsevier, vol. 39(1), pages 71-82, January.
    9. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-374, October.
    10. Office of Health Economics, 2007. "The Economics of Health Care," For School 001490, Office of Health Economics.
    11. Bruce Hollingsworth & Andrew Street, 2006. "The market for efficiency analysis of health care organisations," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1055-1059, October.
    12. Bruce Hollingsworth, 2008. "The measurement of efficiency and productivity of health care delivery," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1107-1128, October.
    13. Subhash C. Ray, 1991. "Resource-Use Efficiency in Public Schools: A Study of Connecticut Data," Management Science, INFORMS, vol. 37(12), pages 1620-1628, December.
    14. Unto Häkkinen & Isabelle Joumard, 2007. "Cross-Country Analysis of Efficiency in OECD Health Care Sectors: Options for Research," OECD Economics Department Working Papers 554, OECD Publishing.
    15. Weaver, Marcia & Deolalikar, Anil, 2004. "Economies of scale and scope in Vietnamese hospitals," Social Science & Medicine, Elsevier, vol. 59(1), pages 199-208, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emiliana Vegas & Chelsea Coffin, 2012. "Education Finance : It's How, Not Simply How Much, That Counts," World Bank Publications - Reports 10056, The World Bank Group.
    2. Jean-François Brun & Constantin Thierry Compaore, 2021. "Public Expenditures Efficiency On Education Distribution in Developing Countries," Working Papers hal-03116615, HAL.
    3. Francesco Grigoli, 2015. "A Hybrid Approach to Estimating the Efficiency of Public Spending on Education in Emerging and Developing Economies," Applied Economics and Finance, Redfame publishing, vol. 2(1), pages 19-32, February.
    4. World Bank, 2011. "Saber - School Finance Objectives and Conceptual Approach," World Bank Publications - Reports 12560, The World Bank Group.
    5. Sandra G. Sosa-Rubí & Sergio Bautista-Arredondo & Carlos Chivardi-Moreno & David Contreras-Loya & Gina Hera-Fuentes & Marjorie Opuni, 2021. "Efficiency, quality, and management practices in health facilities providing outpatient HIV services in Kenya, Nigeria, Rwanda, South Africa and Zambia," Health Care Management Science, Springer, vol. 24(1), pages 41-54, March.
    6. Jean-François Brun & Constantin Thierry Compaore, 2021. "Public Expenditures Efficiency On Education Distribution in Developing Countries," CERDI Working papers hal-03116615, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Santín, 2006. "Measuring technical efficiency in schools: a critic revision," Hacienda Pública Española / Review of Public Economics, IEF, vol. 177(2), pages 57-82, April.
    2. Francesco Porcelli, 2009. "Effects of fiscal decentralisation and electoral accountability efficiency evidence from the Italian health care sector," Working Papers 2009/29, Institut d'Economia de Barcelona (IEB).
    3. Richard Heijink & Xander Koolman & Gert Westert, 2013. "Spending more money, saving more lives? The relationship between avoidable mortality and healthcare spending in 14 countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(3), pages 527-538, June.
    4. Novignon, Jacob & Lawanson, Akanni, 2014. "Efficiency of health systems in sub-Sahara Africa: a comparative analysis of time varying stochastic frontier models," MPRA Paper 56897, University Library of Munich, Germany.
    5. Francesco Porcelli, 2009. "Effects of fiscal decentralisation and electoral accountability efficiency evidence from the Italian health care sector," Working Papers 2009/29, Institut d'Economia de Barcelona (IEB).
    6. Agnieszka KRAWCZYK-SO£TYS & Agnieszka T£UCZAK, 2017. "The Material Resources Using Efficiency In Polish Public Hospitals," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(1), pages 493-501, November.
    7. Francesco Porcelli, 2014. "Electoral accountability and local government efficiency: quasi-experimental evidence from the Italian health care sector reforms," Economics of Governance, Springer, vol. 15(3), pages 221-251, August.
    8. Bonasia, Mariangela & Kounetas, Konstantinos & Oreste, Napolitano, 2020. "Assessment of regional productive performance of European health systems under a metatechnology framework," Economic Modelling, Elsevier, vol. 84(C), pages 234-248.
    9. Balaguer-Coll, Maria Teresa & Prior, Diego & Tortosa-Ausina, Emili, 2007. "On the determinants of local government performance: A two-stage nonparametric approach," European Economic Review, Elsevier, vol. 51(2), pages 425-451, February.
    10. Kristof De Witte & Laura López-Torres, 2017. "Efficiency in education: a review of literature and a way forward," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 339-363, April.
    11. 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, vol. 112(1), pages 70-79.
    12. Roberto Colombi & Gianmaria Martini & Giorgio Vittadini, 2017. "Determinants of transient and persistent hospital efficiency: The case of Italy," Health Economics, John Wiley & Sons, Ltd., vol. 26(S2), pages 5-22, September.
    13. Pablo Hernández de Cos & Enrique Moral-Benito, 2011. "Health care expenditure in the oecd countries: efficiency and regulation," Occasional Papers 1107, Banco de España.
    14. Jill Johnes & Maria Portela & Emmanuel Thanassoulis, 2017. "Efficiency in education," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 331-338, April.
    15. Miningou, Élisé Wendlassida & Vierstraete, Valérie, 2013. "Households' living situation and the efficient provision of primary education in Burkina Faso," Economic Modelling, Elsevier, vol. 35(C), pages 910-917.
    16. Halkos, George & Tzeremes, Nickolaos, 2008. "Measuring regional public health provision," MPRA Paper 23762, University Library of Munich, Germany.
    17. Medin, Emma & Häkkinen, Unto & Linna, Miika & Anthun, Kjartan S. & Kittelsen, Sverre A.C. & Rehnberg, Clas, 2013. "International hospital productivity comparison: Experiences from the Nordic countries," Health Policy, Elsevier, vol. 112(1), pages 80-87.
    18. Kalyan Chakraborty & Basudeb Biswas & W. Cris Lewis, 2001. "Measurement of Technical Efficiency in Public Education: A Stochastic and Nonstochastic Production Function Approach," Southern Economic Journal, John Wiley & Sons, vol. 67(4), pages 889-905, April.
    19. Varabyova, Yauheniya & Müller, Julia-Maria, 2016. "The efficiency of health care production in OECD countries: A systematic review and meta-analysis of cross-country comparisons," Health Policy, Elsevier, vol. 120(3), pages 252-263.
    20. Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007. "Benchmarking and Regulation in the Electricity Distribution Sector," CEPE Working paper series 07-54, CEPE Center for Energy Policy and Economics, ETH Zurich.

    More about this item

    Keywords

    Health Monitoring&Evaluation; Health Systems Development&Reform; Tertiary Education; Disease Control&Prevention; Education For All;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5751. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.