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Resource Allocation by Regression in the National Health Service: A Critique of the Resource Allocation Working Party's Review

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  • Trevor A. Sheldon
  • Roy Carr‐Hill

Abstract

This paper examines the recent review of the Resource Allocation Working Party formula for allocating resources to the regions in the National Health Service from which the current formula‐is derived. Increasingly public resources are allocated by means of formulae which are based on multiple‐regression techniques which attempt to model ‘need’. The paper highlights some of the statistical and methodological problems in developing such formulae using resource allocation in the National Health Service as a case study. The statistical approach of the review is subjected to a rigorous critique and ways of improving the method are suggested. The paper then explores the limitations inherent in this type of modelling methodology. It is argued that there are real problems in attempting to translate technical or scientific models into public policy. This is compounded by the fact that regression techniques are often used by policy makers to give the impression of neutrality while pursuing political ends. The fundamentally political nature of the choice of need indicator must be acknowledged.

Suggested Citation

  • Trevor A. Sheldon & Roy Carr‐Hill, 1992. "Resource Allocation by Regression in the National Health Service: A Critique of the Resource Allocation Working Party's Review," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 155(3), pages 403-420, May.
    • Handle: RePEc:bla:jorssa:v:155:y:1992:i:3:p:403-420
    DOI: 10.2307/2982891
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    Cited by:

    1. Ray Thomas, 1996. "Statistics as Organizational Products," Sociological Research Online, , vol. 1(3), pages 67-76, October.
    2. Enrico Ivaldi, 2016. "Material and social deprivation in Italy: an analysis on a regional basis," Eastern European Business and Economics Journal, Eastern European Business and Economics Studies Centre, vol. 2(3), pages 248-268.
    3. Bond, Derek & Conniffe, Denis, 2003. "Allocating Funding across Health Boards - Is Equity Easy?," Papers HRBWP05, Economic and Social Research Institute (ESRI).
    4. Bond. D. & Conniffe.D., 2002. "Cross-Regional Equality in Health Care Funding," Economics Department Working Paper Series n1120102.pdf, Department of Economics, National University of Ireland - Maynooth.

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