A Hybrid Approach to Efficiency Measurement with Empirical Illustrations from Education and Health

35 Pages Posted: 20 Apr 2016

See all articles by Adam Wagstaff

Adam Wagstaff

World Bank - Development Research Group (DECRG)

Liang Choon Wang

Monash University - Department of Economics

Date Written: August 1, 2011

Abstract

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.

Keywords: Health Monitoring & Evaluation, Health Systems Development & Reform, Tertiary Education, Disease Control & Prevention, Education For All

Suggested Citation

Wagstaff, Adam and Wang, Liang Choon, A Hybrid Approach to Efficiency Measurement with Empirical Illustrations from Education and Health (August 1, 2011). World Bank Policy Research Working Paper No. 5751. Available at SSRN: https://ssrn.com/abstract=1904818

Adam Wagstaff (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/awagstaff

Liang Choon Wang

Monash University - Department of Economics ( email )

Wellington Road
Clayton, Victoria
Australia

HOME PAGE: http://sites.google.com/site/liangchoonwang/

Register to save articles to
your library

Register

Paper statistics

Downloads
96
Abstract Views
436
rank
270,510
PlumX Metrics