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Measuring the efficiency of health systems of OECD countries by data envelopment analysis

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  • Volkan Recai Cetin
  • Serdal Bahce

Abstract

This study aims to assess the efficiency of health sectors of 34 OECD countries by employing input-oriented data envelopment analysis (DEA) method both under constant and variable returns to scale assumptions. In the analysis, the number of doctors, number of patient beds and health expenditure per capita were used as input variables and life expectancy at birth and infant mortality rate were used as outputs. At the first stage, DEA analysis was performed for 34 countries, and at the second stage outlier 8 countries were eliminated to form a more homogeneous group and to achieve more accurate results. 11 of the 26 countries were found to have efficient health systems, and there is room for efficiency improvements in health sector in the remaining 15 countries.

Suggested Citation

  • Volkan Recai Cetin & Serdal Bahce, 2016. "Measuring the efficiency of health systems of OECD countries by data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 48(37), pages 3497-3507, August.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:37:p:3497-3507
    DOI: 10.1080/00036846.2016.1139682
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    1. Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
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    1. Evangelos Grigoroudis & Vassilis S. Kouikoglou & Yannis A. Phillis, 2024. "Allocation of Healthcare Resources in National Health Systems Under Climate Change," Circular Economy and Sustainability, Springer, vol. 4(1), pages 651-670, March.
    2. Youssef Er-Rays & Meriem M'dioud, 2024. "Evaluating the Financial Factors Influencing Maternal, Newborn, and Child Health in Africa," Papers 2402.14939, arXiv.org.
    3. Fang Wu & Wei Chen & Lingling Lin & Xu Ren & Yingna Qu, 2022. "The Balanced Allocation of Medical and Health Resources in Urban Areas of China from the Perspective of Sustainable Development: A Case Study of Nanjing," Sustainability, MDPI, vol. 14(11), pages 1-28, May.
    4. Alvaro Almeida, 2024. "The trade-off between health system resiliency and efficiency: evidence from COVID-19 in European regions," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 25(1), pages 31-47, February.
    5. Marius Sorin Dincă & Gheorghiţa Dincă & Maria Letiţia Andronic & Anna Maria Pasztori, 2021. "Assessment of the European Union’s Educational Efficiency," Sustainability, MDPI, vol. 13(6), pages 1-29, March.
    6. Arrouna Keita, 2024. "Public Agricultural Expenditure Efficiency and Food Security in Sub-Saharan African Countries: Cash Crops or Food Crops?," Working Papers 2024.17, International Network for Economic Research - INFER.
    7. Dar, Khursheed Hussain & Raina, Shahid Hamid, 2024. "Public healthcare efficiency in India: Estimates and determinants using two stage DEA approach," Evaluation and Program Planning, Elsevier, vol. 106(C).
    8. Şeremet, Gülizar Gülcan & Konca, Murat, 2024. "Technical efficiency and its determinants in healthcare systems of underdeveloped countries," Evaluation and Program Planning, Elsevier, vol. 107(C).
    9. Efecan, Ezgi Önen & Efecan, Volkan, 2025. "Impacts of social determinants on the transient and persistent inefficiency of health systems in OECD countries," Health Policy, Elsevier, vol. 161(C).
    10. Oliviero A. Carboni & Paolo Russu, 2018. "Measuring and forecasting regional environmental and economic efficiency in Italy," Applied Economics, Taylor & Francis Journals, vol. 50(4), pages 335-353, January.
    11. Ehsan Pourjavad & Rene V. Mayorga, 2019. "A comparative study and measuring performance of manufacturing systems with Mamdani fuzzy inference system," Journal of Intelligent Manufacturing, Springer, vol. 30(3), pages 1085-1097, March.
    12. Angelo Castaldo & Maria Alessandra Antonelli & Valeria De Bonis & Giorgia Marini, 2020. "Determinants of health sector efficiency: evidence from a two-step analysis on 30 OECD countries," Economics Bulletin, AccessEcon, vol. 40(2), pages 1651-1666.
    13. Nahed Trabelsi & Younes Boujelbene, 2024. "Public Sector Efficiency and Economic Growth in Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 596-615, March.
    14. Youssef Er-Rays & Meriem M'dioud, 2024. "Assessment of Technical Efficiency in the Moroccan Public Hospital Network: Using the DEA Method," Papers 2402.14940, arXiv.org.
    15. Milica Jovanović & Gordana Savić & Yuzhuo Cai & Maja Levi-Jakšić, 2022. "Towards a Triple Helix based efficiency index of innovation systems," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(5), pages 2577-2609, May.
    16. Puertas, Rosa & Marti, Luisa & Guaita-Martinez, José M., 2020. "Innovation, lifestyle, policy and socioeconomic factors: An analysis of European quality of life," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    17. M Zulfakhar Zubir & Aizuddin A.N & Mohd Rizal Abdul Manaf & A Aziz Harith & M Ihsanuddin Abas & Maizatul Izyami Kayat & M Firdaus M Radi & Mas Norehan Merican & Nurcholisah Fitra & Affendi M Ali & Sha, 2025. "Three decades in healthcare service efficiency evaluation: a bootstrapping Data Envelopment Analysis (DEA) of Ministry of Health Malaysia," Health Economics Review, Springer, vol. 15(1), pages 1-14, December.
    18. Gökçe Manavgat & Martine Audibert, 2024. "Healthcare system efficiency and drivers: Re-evaluation of OECD countries for COVID-19," Post-Print hal-04350906, HAL.

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