IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v128y2024ics0305048324000835.html
   My bibliography  Save this article

Incorporating demand constraints into piecewise frontier models of public service provision

Author

Listed:
  • Nguyen, Hong Ngoc
  • O’Donnell, Christopher

Abstract

Evaluating the performance of public service providers is often complicated by the fact that they must choose input levels before demands for their services are known. We consider an even more complicated situation in which service providers have no opportunity to directly influence demands. This means that their predetermined inputs may be more than what is required to meet realised demands. In such cases, conventional measures of revenue efficiency will generally mis-classify rational and efficient managers as inefficient. We develop a more appropriate measure of revenue efficiency that accounts for exogenously-determined demands. We explain how data envelopment analysis (DEA) methods can be used to estimate our measure. The methodology is applied to hospital and health service networks in Queensland (Australia). We find that most of these networks were able to maximise the revenue they could obtain from their predetermined inputs.

Suggested Citation

  • Nguyen, Hong Ngoc & O’Donnell, Christopher, 2024. "Incorporating demand constraints into piecewise frontier models of public service provision," Omega, Elsevier, vol. 128(C).
    • Handle: RePEc:eee:jomega:v:128:y:2024:i:c:s0305048324000835
    DOI: 10.1016/j.omega.2024.103117
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048324000835
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2024.103117?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:128:y:2024:i:c:s0305048324000835. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.