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Dollars and Performance : Cost Effectiveness of Substance Abuse Treatment in Maine

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  • Machado, M.P.

Abstract

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.

Suggested Citation

  • Machado, M.P., 1998. "Dollars and Performance : Cost Effectiveness of Substance Abuse Treatment in Maine," Papers 85, Boston University - Industry Studies Programme.
    • Handle: RePEc:fth:bostin:85
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    Cited by:

    1. Richard Frank & David S. Salkever, 2000. "Market Forces, Diversification of Activity, and the Mission of No t-for -Profit Hospitals," NBER Chapters, in: The Changing Hospital Industry: Comparing Not-for-Profit and For-Profit Institutions, pages 195-226, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    COSTS ; HEALTH SERVICES;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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