Improving the "usefulness" of stochastic frontier analysis for health care

Authors

  • Gary D. Ferrier Univerity of Arkansas, USA

DOI:

https://doi.org/10.17811/ebl.3.1.2014.27-34

Abstract

Newhouse (1994) questioned the usefulness of frontier efficiency estimation for health care applications.  In the intervening years, numerous modeling advances have improved the econometric approach to efficiency measurement known as stochastic frontier analysis (SFA) and myriad academic studies have analyzed efficiency of various health care providers using SFA.  This article takes stock of the current “usefulness” of applications of SFA in the health care sector and offers suggestions on how this usefulness can be further enhanced.

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Published

01-05-2014

How to Cite

Ferrier, G. D. (2014). Improving the "usefulness" of stochastic frontier analysis for health care. Economics and Business Letters, 3(1), 27–34. https://doi.org/10.17811/ebl.3.1.2014.27-34