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Technical efficiency in texas nursing facilities: A stochastic production frontier approach

  • Kris Knox

    ()

  • Eric Blankmeyer
  • J. Stutzman
Registered author(s):

    A rapidly aging U. S. population is straining the resources available for long term care and increasing the urgency of efficient operations in nursing homes. The scope for productivity improvements can be examined by estimating a stochastic frontier production function. We apply the methods of maximum likelihood and quantile regression to a panel of Texas nursing facilities and infer that the average productivity shortfall due to avoidable technical inefficiency is at least 8 percent and perhaps as large as 20 percent. Non-profit facilities are notably less productive than comparable facilities operated for profit, and the industry has constant returns to scale. Copyright Springer 2007

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    File URL: http://hdl.handle.net/10.1007/BF02751513
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    Article provided by Springer in its journal Journal of Economics and Finance.

    Volume (Year): 31 (2007)
    Issue (Month): 1 (March)
    Pages: 75-86

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    Handle: RePEc:spr:jecfin:v:31:y:2007:i:1:p:75-86
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    1. repec:cup:cbooks:9780521608275 is not listed on IDEAS
    2. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
    3. 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 586-94, November.
    4. 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.
    5. Newhouse, Joseph P., 1994. "Frontier estimation: How useful a tool for health economics?," Journal of Health Economics, Elsevier, vol. 13(3), pages 317-322, October.
    6. Erlandsen,E. & Forsund,F.R., 1999. "Efficiency in the provision of municipal nursing- and home-care services : the Norwegian experience," Memorandum 32/1999, Oslo University, Department of Economics.
    7. repec:cup:cbooks:9780521845731 is not listed on IDEAS
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