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


  • Francesco D'Amico
  • Jose-Luis Fernandez


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.

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  • 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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    1. 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.

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