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Efficiency and Adequacy of Public Health System in Improving Health Outcomes: A Stochastic Frontier Analysis for Indian States

In: Challenges and Issues in Indian Fiscal Federalism

Author

Listed:
  • J. V. M. Sarma

    (University of Hyderabad)

  • Pradeep Kamble

    (University of Hyderabad)

Abstract

State governments plays important role in ensuring health of its residence by making them available affordable and quality health services. However, states in India largely differ in their achievements in crucial health indicators like IMR, CMR and MMR. These wide differences in improvement in these health indicators can be attributed to either inadequate public investment in the health sector or inefficiency of utilising these resources or both. The present study mainly focuses on these two aspects namely efficiency of public resources in improving health indicators and adequacy of current level of health inputs in achieving maximum improvement in health indicators. Using Stochastic Frontier Analysis, the study has measured efficiency of major Indian states for the period 2003–2004 to 2012–2013. The efficiency analysis indicates that the states have achieved lower levels of improvements in health indicators than their potential levels. On the other hand, the analysis of adequacy of health inputs indicates that most of the states will not achieve higher improvement of health indicators by mere improving in efficiency. These states, particularly low income states need to increase health inputs drastically in order to improve health indicators further. The study also finds that spread of rural health infrastructure and manpower (spread of sub-centres and health workers) will improve health indicators substantially.

Suggested Citation

  • J. V. M. Sarma & Pradeep Kamble, 2018. "Efficiency and Adequacy of Public Health System in Improving Health Outcomes: A Stochastic Frontier Analysis for Indian States," India Studies in Business and Economics, in: Naseer Ahmed Khan (ed.), Challenges and Issues in Indian Fiscal Federalism, chapter 0, pages 143-158, Springer.
    • Handle: RePEc:spr:isbchp:978-981-10-6217-9_11
    DOI: 10.1007/978-981-10-6217-9_11
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