The decomposition of cost efficiency: An empirical application of the shadow cost function model to Dutch general hospitals

被引:13
作者
Blank J.L.T. [1 ,3 ]
Eggink E. [2 ]
机构
[1] 2661 LW Bergschenhoek
关键词
Allocative efficiency; Cost efficiency; Panel data; Shadow cost model; Stochastic frontier analysis; Technical change; Technical efficiency;
D O I
10.1023/B:HCMS.0000020647.60327.b4
中图分类号
学科分类号
摘要
This paper investigates the performance of the Dutch general hospital industry by a parametric method. In general, the parametric approaches find more difficulties in distinguishing between technical and allocative efficiencies than DEA. Only recently a class of models is developed based on shadow prices which have possibilities to distinguish between technical and allocative efficiency. However, these models cause some serious computational problems. This paper recommends an approach to overcome these problems by using an iterative two-stage estimation procedure. The estimation is conducted on a panel data set of Dutch general hospitals. Estimation shows that this method is effective. The parameter estimates are plausible, reliable and satisfy all theoretical requirements. In particular we find some reliable estimates for the individual hospitals' shadow prices. According to these shadow prices hospitals should reallocate their resources in favor of material supplies at the cost of other personnel and nursing personnel. The mean technical efficiency is about 86%, whereas the allocative efficiency is about 92%. The outcomes also show that technical progress is very small. Economies of scale are present only for small hospitals.
引用
收藏
页码:79 / 88
页数:9
相关论文
共 39 条
[21]  
Judge G.G., Hill R.C., Griffiths W.E., Lutkepohl H., Lee T.-C., Introduction to the Theory and Practice of Econometrics, (1988)
[22]  
Koutsoyiannis A., Modern Microeconomics, (1987)
[23]  
Kumbhakar S.B., Modeling allocative inefficiency in a translog cost function and cost share equations: An exact relationship, Journal of Econometrics, 76, pp. 351-356, (1997)
[24]  
Kumbhakar S.C., Lovell C.A.K., Stochastic Frontier Analysis, (2000)
[25]  
Kumbhakar S.C., Bhattacharyya A., Price distortions and resource-use efficiency in Indian agriculture: A restricted profit function approach, The Review of Economics and Statistics, pp. 231-239, (1992)
[26]  
Li T., Rosenman R., Cost inefficiency in Washington hospitals: A stochastic frontier approach using panel data, Health Care Management Science, 4, pp. 73-81, (2001)
[27]  
Maietta O.W., The Decomposition of Cost Efficiency Through the Shadow Cost Model: The Effect of the Input Price Normalisation, (1999)
[28]  
Maietta O.W., The decomposition of cost efficiency into the technical and allocative components with panel data of Italian dairy farms, European Review of Agricultural Economics, 27, 4, pp. 473-495, (2000)
[29]  
Morey R.C., Fine D.J., Loree S.W., Comparing allocative efficiencies of hospitals. Omega, International Journal of Management Science, 18, 1, pp. 71-83, (1990)
[30]  
Parkin D., Hollingsworth B., Measuring production efficiency of acute hospitals in Scotland, 1991-1994: Validity issues in data envelopment analysis, Applied Economics, 29, pp. 1425-1433, (1997)