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A hybrid approach to efficiency measurement with empirical illustrations from education and health, Volume 1
 
Author:Wagstaff, Adam; Wang, L. Choon; Country:World;
Date Stored:2011/08/03Document Date:2011/08/01
Document Type:Policy Research Working PaperSubTopics:Tertiary Education; Health Monitoring & Evaluation; Health Systems Development & Reform; Disease Control & Prevention; Education For All
Language:EnglishRegion:The World Region
Report Number:WPS5751Collection Title:Policy Research working paper ; no. WPS 5751
Volume No:1  

Summary: Inefficiency is commonplace, yet exercises aimed at improving provider performance efforts to date to measure inefficiency and use it in benchmarking exercises have not been altogether satisfactory. This paper proposes a new approach that blends the themes of Data Envelopment Analysis and the Stochastic Frontier Approach to measure overall efficiency. The hybrid approach nonparametrically estimates inefficiency by comparing actual performance with comparable real-life "best practice" on the frontier and could be useful in exercises aimed at improving provider performance. Four applications in the education and health sectors are used to illustrate the features and strengths of this hybrid approach.

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