A comparison of alternative parametric efficiency estimates using rank-sum test statistic. (18th November 2009)

• Record Type: Journal Article
• Authors: Karagiannis, Roxani; Velentzas, Kostas
• Is Part Of: International journal of computational economics and econometrics. Volume 1:Number 2(2009)
• Page Start: 195
• Page End: 209
• Publication Date: 2009-11-18
• Subjects: technical efficiency -- stochastic frontier analysis -- rank statistics -- hospitals -- Greece -- parametric efficiency -- stochastic modelling -- rank-sum test -- Greece -- healthcare; Econometrics -- Periodicals; Economics -- Data processing -- Periodicals; 330.01519505
• Languages: English
• ISSNs: 1757-1170

Abstract

The aim of this paper is to compare the empirical results from three alternative parametric efficiency models using rank-sum test statistic. The comparison involves the technical efficiency scores and their hospitals ranking of the following models: a) Battese and Coelli (1992); b) technical inefficiency effect model (Battese and Coelli, 1995); c) non-neutral frontier model (Huang and Liu, 1994). For all models an output – distance production function are estimated using panel data of 112 Greek public hospitals. Technical efficiency scores found to be from 37.10% to 58.10%. Battese and Coelli (1992) model represented higher proportion of hospitals with technical efficiency scores between 50%-70%. Rank-sum test statistic implied that the three stochastic models came from different distribution.