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Productivity Changes in Finnish Health Centres: A Malmquist Index Approach


  • Järviö, Maija-Liisa
  • Luoma, Kalevi


This paper studies productivity development of Finnish health centres in 1988-95 by applying different specifications of Malmquist index. As input variables we use operating costs or the number of personnel by employee category, and as output variables different kinds of visits, bed days and discharges. Measuring input use by operating costs gives more positive estimates of productivity change than those obtained by measuring inputs by the number of personnel. This suggests that productivity growth can partly be explained by changes towards a more efficient input mix in health centres. The choice of the base year had only a small effect on productivity change estimates. The results show that the productivity decline of health centres which was quite substantial all through the 1970s and 1980s reversed to a rise from 1990 onwards. The turn in productivity development occurred at the same time as the state and municipalities experienced severe financial difficulties due to recession and falling tax revenues.

Suggested Citation

  • Järviö, Maija-Liisa & Luoma, Kalevi, 2000. "Productivity Changes in Finnish Health Centres: A Malmquist Index Approach," Discussion Papers 218, VATT Institute for Economic Research.
  • Handle: RePEc:fer:dpaper:218

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    References listed on IDEAS

    1. Berg, Sigbjorn Atle & Forsund, Finn R & Jansen, Eilev S, 1992. " Malmquist Indices of Productivity Growth during the Deregulation of Norwegian Banking, 1980-89," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 211-228, Supplemen.
    2. Miika Linna, 1998. "Measuring hospital cost efficiency with panel data models," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 415-427.
    3. Bjurek, Hans & Kjulin, Urban & Gustafsson, Bjorn, 1992. " Efficiency, Productivity and Determinants of Inefficiency at Public Day Care Centers in Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 173-187, Supplemen.
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    Cited by:

    1. Heikki Loikkanen & Ilkka Susiluoton, "undated". "Cost Efficiency of Finnish Municipalities in Basic Service Provision 1994-2002," Regional and Urban Modeling 283600056, EcoMod.


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