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A hybrid approach to efficiency measurement with empirical illustrations from education and health


  • Wagstaff, Adam
  • Wang, L. Choon


Inefficiency is commonplace, yet exercises aimed at improving provider performance efforts to date to measure inefficiency and use it in benchmarking exercises have not been altogether satisfactory. This paper proposes a new approach that blends the themes of Data Envelopment Analysis and the Stochastic Frontier Approach to measure overall efficiency. The hybrid approach nonparametrically estimates inefficiency by comparing actual performance with comparable real-life"best practice"on the frontier and could be useful in exercises aimed at improving provider performance. Four applications in the education and health sectors are used to illustrate the features and strengths of this hybrid approach.

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  • Wagstaff, Adam & Wang, L. Choon, 2011. "A hybrid approach to efficiency measurement with empirical illustrations from education and health," Policy Research Working Paper Series 5751, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5751

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    References listed on IDEAS

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    2. Thomas Fuchs & Ludger Wößmann, 2007. "What accounts for international differences in student performance? A re-examination using PISA data," Empirical Economics, Springer, vol. 32(2), pages 433-464, May.
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    4. António Afonso & Miguel St. Aubyn, 2005. "Non-parametric approaches to education and health efficiency in OECD countries," Journal of Applied Economics, Universidad del CEMA, vol. 8, pages 227-246, November.
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    7. Andreas Ammermueller, 2007. "PISA: What makes the difference?," Empirical Economics, Springer, vol. 33(2), pages 263-287, September.
    8. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 01 Feb 2018.
    9. Andrew Worthington, 2001. "An Empirical Survey of Frontier Efficiency Measurement Techniques in Education," Education Economics, Taylor & Francis Journals, vol. 9(3), pages 245-268.
    10. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-374, October.
    11. Unto Häkkinen & Isabelle Joumard, 2007. "Cross-Country Analysis of Efficiency in OECD Health Care Sectors: Options for Research," OECD Economics Department Working Papers 554, OECD Publishing.
    12. Weaver, Marcia & Deolalikar, Anil, 2004. "Economies of scale and scope in Vietnamese hospitals," Social Science & Medicine, Elsevier, vol. 59(1), pages 199-208, July.
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    Cited by:

    1. Emiliana Vegas & Chelsea Coffin, 2012. "Education Finance : It's How, Not Simply How Much, That Counts," World Bank Other Operational Studies 10056, The World Bank.
    2. World Bank, 2011. "Saber - School Finance Objectives and Conceptual Approach," World Bank Other Operational Studies 12560, The World Bank.

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    Health Monitoring&Evaluation; Health Systems Development&Reform; Tertiary Education; Disease Control&Prevention; Education For All;

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