Title: A comparison of alternative parametric efficiency estimates using rank-sum test statistic

Authors: Roxani Karagiannis, Kostas Velentzas

Addresses: Centre for Planning and Economic Research, 72 Evzonon Str., Asvestohori, 57010 Thessaloniki, Greece ' Department of Economic Studies, University of Macedonia, 156 Egnatia str., 54006 Thessaloniki, Greece

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.

Keywords: technical efficiency; stochastic frontier analysis; rank statistics; hospitals; Greece; parametric efficiency; stochastic modelling; rank-sum test; Greece; healthcare.

DOI: 10.1504/IJCEE.2009.029258

International Journal of Computational Economics and Econometrics, 2009 Vol.1 No.2, pp.195 - 209

Available online: 17 Nov 2009 *

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