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Measuring Inefficiency in Long-term Care Commissioning: Evidence from English Local Authorities

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  • Francesco D'Amico
  • Jose-Luis Fernandez

Abstract

Using a stochastic frontier approach, this paper explores efficiency in the commissioning of publicly funded social services among 148 English Councils through a six-year panel database (2002-2007), covering institutional and community care. Our estimates provide key policy evidence in a context in which optimization is critical both for social and financial purposes. Results suggest a slight decrease in the average inefficiency score, moving from 1.080 in the first year to 1.076 in the last year. Cost-output elasticity of institutional care is greater than those of community care services. Greater savings are obtained when the market is open to independent providers. Copyright 2012, Oxford University Press.

Suggested Citation

  • Francesco D'Amico & Jose-Luis Fernandez, 2012. "Measuring Inefficiency in Long-term Care Commissioning: Evidence from English Local Authorities," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(2), pages 275-299.
  • Handle: RePEc:oup:apecpp:v:34:y:2012:i:2:p:275-299
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    File URL: http://hdl.handle.net/10.1093/aepp/pps022
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    Cited by:

    1. 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).
    2. Francesco Vidoli & Giancarlo Ferrara, 2015. "Analyzing Italian citrus sector by semi-nonparametric frontier efficiency models," Empirical Economics, Springer, vol. 49(2), pages 641-658, September.
    3. 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.
    4. Rajendra Dulal, 2017. "Cost efficiency of nursing homes: do five-star quality ratings matter?," Health Care Management Science, Springer, vol. 20(3), pages 316-325, September.

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