## Abstract In the health economics literature there is an ongoing debate over approaches used to estimate the efficiency of health systems at various levels, from the level of the individual hospital β or nursing home β up to that of the health system as a whole. The two most widely used approache
A quantile-based approach for relative efficiency measurement
β Scribed by Paul M. Griffin; Paul H. Kvam
- Publisher
- John Wiley and Sons
- Year
- 1999
- Tongue
- English
- Weight
- 80 KB
- Volume
- 20
- Category
- Article
- ISSN
- 0143-6570
No coin nor oath required. For personal study only.
β¦ Synopsis
Two popular approaches for efficiency measurement are a non-stochastic approach called data envelopment analysis (DEA) and a parametric approach called stochastic frontier analysis (SFA). Both approaches have modeling difficulty, particularly for ranking firm efficiencies. In this paper, a new parametric approach using quantile statistics is developed. The quantile statistic relies less on the stochastic model than SFA methods, and accounts for a firm's relationship to the other firms in the study by acknowledging the firm's influence on the empirical model, and its relationship, in terms of similarity of input levels, to the other firms.
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