IDEAS home Printed from https://ideas.repec.org/a/kap/itaxpf/v16y2009i4p468-486.html
   My bibliography  Save this article

Efficiency potential and determinants of efficiency: an analysis of the care for the elderly sector in Norway

Author

Listed:
  • Lars-Erik Borge
  • Marianne Haraldsvik

Abstract

The paper provides an analysis of efficiency in the care for the elderly sector in Norway. In a first step, we perform DEA analysis to calculate the degree of efficiency in each municipality and the national level efficiency potential. The analysis reveals substantial variation in efficiency across municipalities, and the national level efficiency potential is calculated to 10%. Tobit regressions and recently developed bootstrap methods are applied in a second stage to explain the variation in efficiency. The second stage analyses indicate that high fiscal capacity, a low degree of user charge financing, and a fragmented local council are associated with low efficiency. Copyright Springer Science+Business Media, LLC 2009

Suggested Citation

  • Lars-Erik Borge & Marianne Haraldsvik, 2009. "Efficiency potential and determinants of efficiency: an analysis of the care for the elderly sector in Norway," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 468-486, August.
    • Handle: RePEc:kap:itaxpf:v:16:y:2009:i:4:p:468-486
    DOI: 10.1007/s10797-009-9110-7
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10797-009-9110-7
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10797-009-9110-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lars-Erik Borge & Jørn Rattsø, 1998. "Demographic Shift, Relative Costs and the Allocation of Local Public Consumption in Norway," Chapters, in: Jørn Rattsø (ed.), Fiscal Federalism and State–local Finance, chapter 5, pages 71-92, Edward Elgar Publishing.
    2. Massimo Filippini, 2001. "Economies of scale in the Swiss nursing home industry," Applied Economics Letters, Taylor & Francis Journals, vol. 8(1), pages 43-46.
    3. Lars-Erik Borge & Linn Renée Naper, 2006. "Efficiency Potential and Efficiency Variation in Norwegian Lower Secondary Schools," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(2), pages 221-249, June.
    4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    5. Yun Zhang & Robert Bartels, 1998. "The Effect of Sample Size on the Mean Efficiency in DEA with an Application to Electricity Distribution in Australia, Sweden and New Zealand," Journal of Productivity Analysis, Springer, vol. 9(3), pages 187-204, March.
    6. Nyman, John A & Bricker, Dennis L, 1989. "Profit Incentives and Technical Efficiency in the Production of Nursing Home Care," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 586-594, November.
    7. Jorid Kalseth & Jørn Rattsø, 1998. "Political Control of Administrative Spending: The Case of Local Governments in Norway," Chapters, in: Jørn Rattsø (ed.), Fiscal Federalism and State–local Finance, chapter 11, pages 181-201, Edward Elgar Publishing.
    8. Mei Xue & Patrick T. Harker, 1999. "Overcoming the Inherent Dependency of DEA Efficiency Scores: A Bootstrap Approach," Center for Financial Institutions Working Papers 99-17, Wharton School Center for Financial Institutions, University of Pennsylvania.
    9. Perelman, Sergio & Santín, Daniel, 2009. "How to generate regularly behaved production data? A Monte Carlo experimentation on DEA scale efficiency measurement," European Journal of Operational Research, Elsevier, vol. 199(1), pages 303-310, November.
    10. Vitaliano, Donald F. & Toren, Mark, 1994. "Cost and efficiency in nursing homes: a stochastic frontier approach," Journal of Health Economics, Elsevier, vol. 13(3), pages 281-300, October.
    11. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-643, December.
    12. Laurence Assous, 2001. "Long-term Health and Social Care for the Elderly: An International Perspective*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 26(4), pages 667-683, October.
    13. Lars-Erik Borge & Torberg Falch & Per Tovmo, 2008. "Public sector efficiency: the roles of political and budgetary institutions, fiscal capacity, and democratic participation," Public Choice, Springer, vol. 136(3), pages 475-495, September.
    14. Laure Latruffe & Sophia Davidova & Kelvin Balcombe, 2008. "Application of a double bootstrap to investigation of determinants of technical efficiency of farms in Central Europe," Journal of Productivity Analysis, Springer, vol. 29(2), pages 183-191, April.
    15. Lars-Erik Borge & Jørn Rattsø, 2005. "The Relationships between Cost and User Charges: The Case of the Norwegian Utility Service," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(1), pages 98-119, March.
    16. Afonso, Antonio & St. Aubyn, Miguel, 2006. "Cross-country efficiency of secondary education provision: A semi-parametric analysis with non-discretionary inputs," Economic Modelling, Elsevier, vol. 23(3), pages 476-491, May.
    17. Juha Laine & Miika Linna & Unto Häkkinen & Anja Noro, 2005. "Measuring the productive efficiency and clinical quality of institutional long‐term care for the elderly," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 245-256, March.
    18. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    19. Kooreman, Peter, 1994. "Nursing home care in The Netherlands: a nonparametric efficiency analysis," Journal of Health Economics, Elsevier, vol. 13(3), pages 301-316, October.
    20. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    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. Souksavanh Vixathep & Nobuaki Matsunaga, 2012. "Firm Efficiency in Cambodia's Garment Industry on the Eve of the Multi-Fiber Arrangement Termination," Asian Economic Journal, East Asian Economic Association, vol. 26(4), pages 359-380, December.
    2. Laura Carosi & Giovanna D'Inverno & Letizia Ravagli, 2014. "Global public spending efficiency in Tuscan municipalities," Discussion Papers 2014/175, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. lo Storto, Corrado, 2020. "Performance evaluation of social service provision in Italian major municipalities using Network Data Envelopment Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    4. Massimo Finocchiaro Castro & Calogero Guccio, 2014. "Searching for the source of technical inefficiency in Italian judicial districts: an empirical investigation," European Journal of Law and Economics, Springer, vol. 38(3), pages 369-391, December.
    5. Cuccia, Tiziana & Guccio, Calogero & Rizzo, Ilde, 2016. "The effects of UNESCO World Heritage List inscription on tourism destinations performance in Italian regions," Economic Modelling, Elsevier, vol. 53(C), pages 494-508.
    6. Iparraguirre, José Luis & Ma, Ruosi, 2015. "Efficiency in the provision of social care for older people. A three-stage Data Envelopment Analysis using self-reported quality of life," Socio-Economic Planning Sciences, Elsevier, vol. 49(C), pages 33-46.
    7. Bönisch, Peter & Haug, Peter & Illy, Annette & Schreier, Lukas, 2011. "Municipality Size and Efficiency of Local Public Services: Does Size Matter?," IWH Discussion Papers 18/2011, Halle Institute for Economic Research (IWH).
    8. Shiovan Ni Luasa & Declan Dineen & Marta Zieba, 2018. "Technical and scale efficiency in public and private Irish nursing homes – a bootstrap DEA approach," Health Care Management Science, Springer, vol. 21(3), pages 326-347, September.
    9. Tiziana Cuccia & Calogero Guccio & Ilde Rizzo, 2013. "Does Unesco inscription affect the performance of tourism destinations? A regional perspective," ACEI Working Paper Series AWP-04-2013, Association for Cultural Economics International, revised Oct 2013.
    10. Rune Sørensen, 2014. "Political competition, party polarization, and government performance," Public Choice, Springer, vol. 161(3), pages 427-450, December.
    11. Massimo Finocchiaro Castro & Calogero Guccio & Ilde Rizzo, 2011. "Public intervention on heritage conservation and determinants of heritage authorities’ performance: a semi-parametric analysis," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(1), pages 1-16, February.

    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. Shiovan Ni Luasa & Declan Dineen & Marta Zieba, 2018. "Technical and scale efficiency in public and private Irish nursing homes – a bootstrap DEA approach," Health Care Management Science, Springer, vol. 21(3), pages 326-347, September.
    2. Iparraguirre, José Luis & Ma, Ruosi, 2015. "Efficiency in the provision of social care for older people. A three-stage Data Envelopment Analysis using self-reported quality of life," Socio-Economic Planning Sciences, Elsevier, vol. 49(C), pages 33-46.
    3. George Fragkiadakis & Michael Doumpos & Constantin Zopounidis & Christophe Germain, 2016. "Operational and economic efficiency analysis of public hospitals in Greece," Post-Print hal-01414677, HAL.
    4. Aparicio, Juan & Cordero, Jose M. & Gonzalez, Martin & Lopez-Espin, Jose J., 2018. "Using non-radial DEA to assess school efficiency in a cross-country perspective: An empirical analysis of OECD countries," Omega, Elsevier, vol. 79(C), pages 9-20.
    5. George Fragkiadakis & Michael Doumpos & Constantin Zopounidis & Christophe Germain, 2016. "Operational and economic efficiency analysis of public hospitals in Greece," Annals of Operations Research, Springer, vol. 247(2), pages 787-806, December.
    6. Borge, Lars-Erik & Rattsø, Jørn, 2008. "Property taxation as incentive for cost control: Empirical evidence for utility services in Norway," European Economic Review, Elsevier, vol. 52(6), pages 1035-1054, August.
    7. Daniel Santín & Gabriela Sicilia, 2015. "Measuring the efficiency of public schools in Uruguay: main drivers and policy implications," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 24(1), pages 1-28, December.
    8. Kohl, Sebastian & Brunner, Jens O., 2020. "Benchmarking the benchmarks – Comparing the accuracy of Data Envelopment Analysis models in constant returns to scale settings," European Journal of Operational Research, Elsevier, vol. 285(3), pages 1042-1057.
    9. José Manuel Cordero Ferrera & Francisco Pedraja Chaparro & Javier Salinas Jiménez, 2009. "Efficiency measurement in the Spanish cadastral units through DEA," Working Papers 2009/35, Institut d'Economia de Barcelona (IEB).
    10. José Manuel Cordero Ferrera & Francisco Pedraja Chaparro & Javier Salinas Jiménez, 2009. "Efficiency measurement in the Spanish cadastral units through DEA," Working Papers 2009/35, Institut d'Economia de Barcelona (IEB).
    11. 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.
    12. Kristof De Witte & Rui Marques, 2010. "Designing performance incentives, an international benchmark study in the water sector," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(2), pages 189-220, June.
    13. Zaman, Mohammad Shahid & Valiyattoor, Vipin & Bhandari, Anup Kumar, 2022. "Dynamics of total factor productivity growth: An empirical analysis of Indian commercial banks," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    14. Jindal, Abhinav & Nilakantan, Rahul, 2021. "Falling efficiency levels of Indian coal-fired power plants: A slacks-based analysis," Energy Economics, Elsevier, vol. 93(C).
    15. Yauheniya Varabyova & Jonas Schreyögg, 2018. "Integrating quality into the nonparametric analysis of efficiency: a simulation comparison of popular methods," Annals of Operations Research, Springer, vol. 261(1), pages 365-392, February.
    16. Kalb, Alexander, 2009. "What determines local governments' technical efficiency? The case of road maintenance," ZEW Discussion Papers 09-047, ZEW - Leibniz Centre for European Economic Research.
    17. Carlos Rosano-Peña & João Vitor Borges Silva & André Luiz Marques Serrano & José Eustáquio Ribeiro Vieira Filho & Herbert Kimura, 2022. "Eco-Efficiency of Agriculture in the Amazon Biome: Robust Indices and Determinants," World, MDPI, vol. 3(4), pages 1-19, September.
    18. Fadzlan Sufian & Muzafar Shah Habibullah, 2012. "Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes," Progress in Development Studies, , vol. 12(1), pages 19-46, January.
    19. Kankana Mukherjee & Rexford Santerre & Ning Jackie Zhang, 2010. "Explaining the efficiency of local health departments in the U.S.: an exploratory analysis," Health Care Management Science, Springer, vol. 13(4), pages 378-387, December.
    20. Tao Du, 2017. "Performance Measurement of Healthcare Service and Association Discussion between Quality and Efficiency: Evidence from 31 Provinces of Mainland China," Sustainability, MDPI, vol. 10(1), pages 1-19, December.

    More about this item

    Keywords

    Efficiency; Care for the elderly; Data envelopment analysis; Determinants of efficiency; Bootstrap; H75; I12;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

    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:kap:itaxpf:v:16:y:2009:i:4:p:468-486. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.