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Directional distance function for FDH technologies with an application to Tunisian public hospitals

Author

Listed:
  • Arfa Chokri

    () (INTES, University of Carthage, Tunisia)

  • Hervé Leleu

    (LEM-CNRS (UMR 8179), IÉSEG School of Management)

  • Ben Romdhane Habiba

    (INSP, Faculty of Medicine, Tunisia)

Abstract

Tunisian’s public hospitals have been often deemed inefficiency, yet unfortunately no empirical study has demonstrated the breadth and/or depth of this inefficiency. To address this issue, we develop a non parametric methodology to measure efficiency at patient level for five cardiology wards. This methodology is based on the estimation of the input directional distance function, using a recent developed linear form of free disposal hull model. Results show that, on average, each cardiology ward could save more than 50% of each input; whereas at the patient level, illness severity and patients’ profiles were associated with inefficiency. At the ward level, practice patterns and wards missions explain disparities on inefficiency. By defining sub-specializations or standard procedures for cardiology wards, we demonstrate where the public hospitals can save resources when treating these patients.

Suggested Citation

  • Arfa Chokri & Hervé Leleu & Ben Romdhane Habiba, 2008. "Directional distance function for FDH technologies with an application to Tunisian public hospitals," Working Papers 2008-ECO-03, IESEG School of Management.
  • Handle: RePEc:ies:wpaper:e200803
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    References listed on IDEAS

    as
    1. Léopold Simar & Paul Wilson, 2000. "Statistical Inference in Nonparametric Frontier Models: The State of the Art," Journal of Productivity Analysis, Springer, vol. 13(1), pages 49-78, January.
    2. Leleu, Herve, 2006. "A linear programming framework for free disposal hull technologies and cost functions: Primal and dual models," European Journal of Operational Research, Elsevier, vol. 168(2), pages 340-344, January.
    3. Walter Briec & Kristiaan Kerstens & Philippe Venden Eeckaut, 2004. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Journal of Economics, Springer, vol. 81(2), pages 155-192, February.
    4. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
    5. Walter Briec & Kristiaan Kerstens & Philippe Vanden Eeckaut, 2006. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity (Journal of Economics 81(2):155–192)," Journal of Economics, Springer, vol. 87(3), pages 307-308, April.
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