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Efficiency of Raising Health Outcomes in the Indian States

Author

Listed:
  • Prachitha J.

    (Madras School of Economics)

  • K.R. Shanmugam

    (Madras School of Economics)

Abstract

As health is a state subject and merit good, the state Governments in India spend increased amounts on it. However, the health outcomes vary across the states. This study measures the efficiency of Indian states in raising health outcomes, using the stochastic frontier methodology for panel data for the period 2000-2009. The average efficiency is estimated at 72.7 per cent, implying that there is a scope for improving health performances, without additional resources. In 7 out of 17 states, the efficiency is below the average efficiency. These states can improve their performance significantly by following the best practices. The results also indicate that the states can improve their health performance by increasing their expenditure on health, providing more medical doctors/specialists, educating people and create health awareness.

Suggested Citation

  • Prachitha J. & K.R. Shanmugam, 2012. "Efficiency of Raising Health Outcomes in the Indian States," Working Papers 2012-070, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2012-070
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    References listed on IDEAS

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    1. R. J. Chelliah & K.R. Shanmugam, 2001. "Some Aspects Of Inter District Disparities In Tamil Nadu," Working Papers 2004-01, Madras School of Economics,Chennai,India.
    2. Beenstock, Michael & Sturdy, Patricia, 1990. "The determinants of infant mortality in regional India," World Development, Elsevier, vol. 18(3), pages 443-453, March.
    3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    4. Goldstein, Joshua S., 1985. "Basic human needs: The plateau curve," World Development, Elsevier, vol. 13(5), pages 595-609, May.
    5. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    6. repec:bla:devpol:v:23:y:2005:i:2:p:145-163 is not listed on IDEAS
    7. Sonia Bhalotra, 2007. "Spending to save? State health expenditure and infant mortality in India," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 911-928, September.
    8. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Haq, Imtiyaz ul & Tariq, Asif, 2020. "Technical Efficiency of Saffron Cultivating Farms in Kashmir Valley: Post National Saffron Mission Implementation," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 3), September.
    2. Dar, Khursheed Hussain & Raina, Shahid Hamid, 2024. "Public healthcare efficiency in India: Estimates and determinants using two stage DEA approach," Evaluation and Program Planning, Elsevier, vol. 106(C).
    3. Sasmita Behera & Jalandhar Pradhan, 2021. "Uneven economic burden of non-communicable diseases among Indian households: A comparative analysis," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-17, December.
    4. Rahab Mbau & Anita Musiega & Lizah Nyawira & Benjamin Tsofa & Andrew Mulwa & Sassy Molyneux & Isabel Maina & Julie Jemutai & Charles Normand & Kara Hanson & Edwine Barasa, 2023. "Analysing the Efficiency of Health Systems: A Systematic Review of the Literature," Applied Health Economics and Health Policy, Springer, vol. 21(2), pages 205-224, March.
    5. Dino Rizzi & Michele Zanette, 2021. "Potential efficiency gains and expenditure savings in the Italian Regional Healthcare Systems," Politica economica, Società editrice il Mulino, issue 2, pages 187-214.

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    More about this item

    Keywords

    Public health expenditure; Indian States; Stochastic frontier; panel data;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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