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Comparing French and US hospital technologies: a directional input distance function approach

Author

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  • Benoit Dervaux
  • Gary Ferrier
  • Herve Leleu
  • Vivian Valdmanis

Abstract

French and US hospital technologies are compared using directional input distance functions. The aggregation properties of the directional distance function allow comparison of hospital industry-level performance as well as standard firm-level performance with regard to productive efficiency. In addition, the underlying constituents of efficiency - in the short run, congestion and technical inefficiency, and in the long run, scale inefficiency - are analysed by decomposing the overall measure. By virtue of using the directional distance function, it is also possible to obtain an estimate of a lower bound on allocative inefficiency. It is found that French and US hospitals use quite different technologies. Long run scale inefficiencies cause most of the French hospitals' inefficiency, while short run technical inefficiency is the main source of overall productive inefficiency in the US hospitals.

Suggested Citation

  • Benoit Dervaux & Gary Ferrier & Herve Leleu & Vivian Valdmanis, 2004. "Comparing French and US hospital technologies: a directional input distance function approach," Applied Economics, Taylor & Francis Journals, vol. 36(10), pages 1065-1081.
  • Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1065-1081 DOI: 10.1080/0003684042000246786
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    References listed on IDEAS

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    Cited by:

    1. Rym Ayadi & Jean-Philippe Boussemart & Hervé Leleu & Dhafer Saidane, 2013. "Mergers and Acquisitions in European banking higher productivity or better synergy among business lines?," Journal of Productivity Analysis, Springer, vol. 39(2), pages 165-175, April.
    2. repec:kap:hcarem:v:20:y:2017:i:3:d:10.1007_s10729-016-9359-1 is not listed on IDEAS
    3. Rym Ayadi & Jean-Philippe Boussemart & Hervé Leleu & Dhafer Saidane, 2010. "Mergers & Acquisitions in European Banking Higher productivity or better synergy among business lines?," Working Papers 2011-ECO-03, IESEG School of Management.
    4. Emma Medin & Kjartan Anthun & Unto Häkkinen & Sverre Kittelsen & Miika Linna & Jon Magnussen & Kim Olsen & Clas Rehnberg, 2011. "Cost efficiency of university hospitals in the Nordic countries: a cross-country analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(6), pages 509-519, December.
    5. C. O’Donnell & K. Nguyen, 2013. "An econometric approach to estimating support prices and measures of productivity change in public hospitals," Journal of Productivity Analysis, Springer, pages 323-335.
    6. Sverre Kittelsen & Benny Winsnes & Kjartan Anthun & Fanny Goude & Øyvind Hope & Unto Häkkinen & Birgitte Kalseth & Jannie Kilsmark & Emma Medin & Clas Rehnberg & Hanna Rättö, 2015. "Decomposing the productivity differences between hospitals in the Nordic countries," Journal of Productivity Analysis, Springer, vol. 43(3), pages 281-293, June.
    7. Carlos Pestana Barros & Stephanie Leach, 2006. "Performance evaluation of the English Premier Football League with data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1449-1458.
    8. Cheng, Gang & Zervopoulos, Panagiotis D., 2014. "Estimating the technical efficiency of health care systems: A cross-country comparison using the directional distance function," European Journal of Operational Research, Elsevier, vol. 238(3), pages 899-910.
    9. Xia, X.H. & Chen, G.Q., 2012. "Energy abatement in Chinese industry: Cost evaluation of regulation strategies and allocation alternatives," Energy Policy, Elsevier, vol. 45(C), pages 449-458.
    10. Bruce Hollingsworth, 2008. "The measurement of efficiency and productivity of health care delivery," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1107-1128.
    11. Jean-Philippe Boussemart & Hervé Leleu, 2008. "Comparing TFP Catching-up and Capital Deepening in US and European Growths: A Directional Distance Function Approach," Working Papers 2008-ECO-01, IESEG School of Management.
    12. repec:eee:ejores:v:262:y:2017:i:1:p:361-369 is not listed on IDEAS
    13. Medin, Emma & Häkkinen, Unto & Linna, Miika & Anthun, Kjartan S. & Kittelsen, Sverre A.C. & Rehnberg, Clas, 2013. "International hospital productivity comparison: Experiences from the Nordic countries," Health Policy, Elsevier, vol. 112(1), pages 80-87.
    14. Varabyova, Yauheniya & Schreyögg, Jonas, 2013. "International comparisons of the technical efficiency of the hospital sector: Panel data analysis of OECD countries using parametric and non-parametric approaches," Health Policy, Elsevier, vol. 112(1), pages 70-79.

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