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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

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    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.
    2. William Greene, 2004. "Distinguishing between heterogeneity and inefficiency: stochastic frontier analysis of the World Health Organization's panel data on national health care systems," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 959-980, October.
    3. Weisbrod, Burton A, 1991. "The Health Care Quadrilemma: An Essay on Technological Change, Insurance, Quality of Care, and Cost Containment," Journal of Economic Literature, American Economic Association, vol. 29(2), pages 523-552, June.
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    Cited by:

    1. Ndlovu, Thabang, 2022. "Are South African Medical Schemes Efficient? A Longitudinal Analysis," MPRA Paper 115507, University Library of Munich, Germany.
    2. Youssef Er-Rays & Meriem M’dioud & Hamid Ait-Lemqeddem & Mustapha Ezzahiri, 2024. "Assessing efficiency maternal and child health services in Morocco: data envelopement analysis and Tobit model," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(6), pages 5577-5619, December.
    3. Keller, Michael, 2020. "Wasted windfalls: Inefficiencies in health care spending in oil rich countries," Resources Policy, Elsevier, vol. 66(C).
    4. Constantin Ogloblin, 2023. "Health care financing and productivity of health care in OECD countries: a stochastic frontier analysis," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 259-283, June.
    5. Dino Rizzi & Michele Zanette, 2021. "Potential efficiency gains and expenditure savings in the Italian Regional Healthcare Systems," Politica economica, Società editrice il Mulino, issue 2, pages 187-214.

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    More about this item

    Keywords

    Health Care; Efficiency; Stochastic Frontier;
    All these keywords.

    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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