Dollars and Performance: Cost Effectiveness of Substance Abuse Treatment in Maine
If public funds are allocated efficiently , then an increase in expenditure should improve the performance of substance abuse treatment programs. However, the unconditional correlation between performance and expenditures per patient is non-positive in the data sets used in this paper. One explanation for this seemingly surprising result is that programs that treat more difficult patients receive more resources per patient. This paper addresses this potential endogeneity both theoretically and empirically.
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|Date of creation:||Jan 1998|
|Contact details of provider:|| Postal: Boston University, Industry Studies Program; Department of Economics, 270 Bay Road, Boston, Massachusetts 02215.|
Web page: http://www.bu.edu/econ/isp/
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