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Health Care Efficiency Across Countries: A Stochastic Frontier Analysis

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  • OGLOBLIN, Constantin

Abstract

This study addresses the increasingly important issue of efficiency of national health care systems. It uses the stochastic frontier technique to estimate a health production function where the inefficiency term is modeled as a linear function of relevant explanatory variables. The results show that inefficiency of national health care systems is inversely related with per capita income and directly related with income inequality. An important policy related finding is that health care systems are more efficient when greater shares of total health care expenditure come from public sources and out of pocket, rather than from private insurance coverage.

Suggested Citation

  • OGLOBLIN, Constantin, 2011. "Health Care Efficiency Across Countries: A Stochastic Frontier Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(1).
    • Handle: RePEc:eaa:aeinde:v:11:y:2011:i:1_1
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    File URL: http://www.usc.es/economet/reviews/aeid1111.pdf
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    References listed on IDEAS

    as
    1. Guisan, M.C. & Exposito, P., 2007. "Education, Development And Health Expenditure In Africa: Estimation Of Cross-Section Model Of 39 Countries In 2000-2005," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 135-142.
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    More about this item

    Keywords

    Health Care; Efficiency; Stochastic Frontier;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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