IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v5y1996i5p435-445.html
   My bibliography  Save this article

Financial incentives and productive efficiency in Finnish health centres

Author

Listed:
  • Kalevi Luoma
  • Maija‐Liisa Järviö
  • Ilpo Suoniemi
  • Reino T. Hjerppe

Abstract

This paper examines the productive efficiency of Finnish health centres by applying data envelopment analysis (DEA) and econometric methods. The Tobit model was used in an attempt to find out how various economic, structural and demographic factors affect efficiency. The dependent variable of the model, the coefficient of inefficiency, was obtained by deducting the DEA efficiency score from one. According to the results, a high percentage of funding coming from central government matching grants and high taxable income per inhabitant are significant predictors of inefficiency. The results suggest that more generous resources tend to increase inefficiency since they may lessen incentives for tight cost and performance control. A high share of doctors and a low share of administrative, maintenance and support personnel promote efficiency. A low population share of the elderly and a long distance to the nearest hospital are positively associated with inefficiency.

Suggested Citation

  • Kalevi Luoma & Maija‐Liisa Järviö & Ilpo Suoniemi & Reino T. Hjerppe, 1996. "Financial incentives and productive efficiency in Finnish health centres," Health Economics, John Wiley & Sons, Ltd., vol. 5(5), pages 435-445, September.
  • Handle: RePEc:wly:hlthec:v:5:y:1996:i:5:p:435-445
    DOI: 10.1002/(SICI)1099-1050(199609)5:53.0.CO;2-Y
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/(SICI)1099-1050(199609)5:53.0.CO;2-Y
    Download Restriction: no

    File URL: https://libkey.io/10.1002/(SICI)1099-1050(199609)5:53.0.CO;2-Y?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
    ---><---

    References listed on IDEAS

    as
    1. MacKinnon, James G & Magee, Lonnie, 1990. "Transforming the Dependent Variable in Regression Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 315-339, May.
    2. Boussofiane, A. & Dyson, R. G. & Thanassoulis, E., 1991. "Applied data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 52(1), pages 1-15, May.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. repec:bla:scandj:v:94:y:1992:i:0:p:s173-87 is not listed on IDEAS
    5. Kooreman, Peter, 1994. "Nursing home care in The Netherlands: a nonparametric efficiency analysis," Journal of Health Economics, Elsevier, vol. 13(3), pages 301-316, October.
    6. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    7. Georgie D. M. Hyde, 1988. "Health and Social Affairs," Palgrave Macmillan Books, in: South Korea, chapter 5, pages 73-99, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaoying Guo & Wei Wei & Yang Li & Lei-Ya Wang, 2019. "A Study of Different Types of Air Pollutants on the Efficiency of China’s Hotel Industry," IJERPH, MDPI, vol. 16(22), pages 1-13, November.
    2. Margherita Neri & Patricia Cubi-Molla & Graham Cookson, 2022. "Approaches to Measure Efficiency in Primary Care: A Systematic Literature Review," Applied Health Economics and Health Policy, Springer, vol. 20(1), pages 19-33, January.
    3. Kalinichenko, Olena & Amado, Carla A.F. & Santos, Sérgio P., 2022. "Exploring the potential of Data Envelopment Analysis for enhancing pay-for-performance programme design in primary health care," European Journal of Operational Research, Elsevier, vol. 298(3), pages 1084-1100.
    4. Miika Linna, 1998. "Measuring hospital cost efficiency with panel data models," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 415-427, August.
    5. Baohong Li & Yingdong Huo & Shi Yin, 2022. "Sustainable Financing Efficiency and Environmental Value in China’s Energy Conservation and Environmental Protection Industry under the Double Carbon Target," Sustainability, MDPI, vol. 14(15), pages 1-25, August.
    6. Jaume Puig‐Junoy, 1998. "Technical efficiency in the clinical management of critically ill patients," Health Economics, John Wiley & Sons, Ltd., vol. 7(3), pages 263-277, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harald Dyckhoff & Katrin Allen, 1999. "Theoretische Begründung einer Effizienzanalyse mittels Data Envelopment Analysis (DEA)," Schmalenbach Journal of Business Research, Springer, vol. 51(5), pages 411-436, May.
    2. Verspagen, Bart & Werker, Claudia, 2003. "The Invisible College of The Economics of Innovation and Technological Change," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 21, pages 393-419, December.
    3. Reuben Elan & Verma Bharat Bhushan & Bhat Ramesh, 2001. "Hospital Efficiency: An Empirical Analysis of District and Grant-in-Aid Hospitals in Gujarat," IIMA Working Papers WP2001-07-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Yan, Hong & Wei, Quanling & Hao, Gang, 2002. "DEA models for resource reallocation and production input/output estimation," European Journal of Operational Research, Elsevier, vol. 136(1), pages 19-31, January.
    5. Lampe, Hannes W. & Hilgers, Dennis, 2015. "Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA," European Journal of Operational Research, Elsevier, vol. 240(1), pages 1-21.
    6. Barros, Carlos Pestana & Peypoch, Nicolas, 2008. "Technical efficiency of thermoelectric power plants," Energy Economics, Elsevier, vol. 30(6), pages 3118-3127, November.
    7. Carlos Pestana Barros & Maria Teresa Medeiros Garcia, 2006. "Performance Evaluation of Pension Funds Management Companies with Data Envelopment Analysis," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 9(2), pages 165-188, September.
    8. Sebastian Kohl & Jan Schoenfelder & Andreas Fügener & Jens O. Brunner, 2019. "The use of Data Envelopment Analysis (DEA) in healthcare with a focus on hospitals," Health Care Management Science, Springer, vol. 22(2), pages 245-286, June.
    9. Beasley, J. E., 2003. "Allocating fixed costs and resources via data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 147(1), pages 198-216, May.
    10. Chun-Chu Liu, 2006. "Simulating weight restrictions in data envelopment analysis using the subjective and objective integrated approach," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2545-2552.
    11. Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
    12. Seyed Rakhshan & Ali Kamyad & Sohrab Effati, 2015. "Ranking decision-making units by using combination of analytical hierarchical process method and Tchebycheff model in data envelopment analysis," Annals of Operations Research, Springer, vol. 226(1), pages 505-525, March.
    13. Soteriou, Andreas C. & Zenios, Stavros A., 1999. "Using data envelopment analysis for costing bank products," European Journal of Operational Research, Elsevier, vol. 114(2), pages 234-248, April.
    14. Patricija Bajec & Danijela Tuljak-Suban, 2019. "An Integrated Analytic Hierarchy Process—Slack Based Measure-Data Envelopment Analysis Model for Evaluating the Efficiency of Logistics Service Providers Considering Undesirable Performance Criteria," Sustainability, MDPI, vol. 11(8), pages 1-18, April.
    15. María Victoria Uribe‐Bohorquez & Jennifer Martínez‐Ferrero & Isabel‐María García‐Sánchez, 2019. "Women on boards and efficiency in a business‐orientated environment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 82-96, January.
    16. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2018. "σ-µ efficiency analysis: A new methodology for evaluating units through composite indices," MPRA Paper 83569, University Library of Munich, Germany.
    17. Alessandra Cepparulo & Gilles Mourre, 2020. "How and How Much? The Growth-Friendliness of Public Spending through the Lens," European Economy - Discussion Papers 132, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    18. K. -L. Wang & Y. -T. Tseng & C. -C. Weng, 2003. "A study of production efficiencies of integrated securities firms in Taiwan," Applied Financial Economics, Taylor & Francis Journals, vol. 13(3), pages 159-167.
    19. Tarnaud, Albane Christine & Leleu, Hervé, 2018. "Portfolio analysis with DEA: Prior to choosing a model," Omega, Elsevier, vol. 75(C), pages 57-76.
    20. Yang, Guo-liang & Fukuyama, Hirofumi & Chen, Kun, 2019. "Investigating the regional sustainable performance of the Chinese real estate industry: A slack-based DEA approach," Omega, Elsevier, vol. 84(C), pages 141-159.

    More about this item

    Statistics

    Access and download statistics

    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:wly:hlthec:v:5:y:1996:i:5:p:435-445. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    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.