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Efficiency estimation with panel quantile regression: An application using longitudinal data from nursing homes in Ontario, Canada

Author

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  • Amy Hsu
  • Adrian Rohit Dass
  • Whitney Berta
  • Peter Coyte
  • Audrey Laporte

Abstract

This paper investigates the technical efficiency of nursing homes on Ontario, Canada. We apply Quantile Regression (QR) with a Mundlak specification to a panel dataset of 627 nursing homes, observed over 15 years. Results from the QR models found chain affiliation and urban location to be positive predictors of technical efficiency in the context of a case-mix adjusted volume based outcome measure. The effect of profit status varied across the conditional quantiles. The analysis presented in this paper aims to demonstrate a novel approach to efficiency measurement, and suggests that cost containment strategies (e.g., prospective reimbursement) and restrictions on long-term care bed supply in the market may continue to foster the expansion of nursing home chains in this sector.

Suggested Citation

  • Amy Hsu & Adrian Rohit Dass & Whitney Berta & Peter Coyte & Audrey Laporte, 2017. "Efficiency estimation with panel quantile regression: An application using longitudinal data from nursing homes in Ontario, Canada," Working Papers 170003, Canadian Centre for Health Economics.
    • Handle: RePEc:cch:wpaper:170003
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    Cited by:

    1. Juan Cabas Monje & Bouali Guesmi & Amer Ait Sidhoum & José María Gil, 2023. "Measuring technical efficiency of Spanish pig farming: Quantile stochastic frontier approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(4), pages 688-703, October.
    2. Monje, Juan Cabas & Sidhoum, Amer Ait & Gil, Jose M., 2021. "Investigating Technical Efficiency of Spanish Pig Farming: A Quantile Regression Approach," 2021 Conference, August 17-31, 2021, Virtual 315196, International Association of Agricultural Economists.

    More about this item

    Keywords

    long-term care; nursing homes; technical efficiency; quantile regression; panel data;
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