Title: Efficiency in Production of Health: A Stochastic Frontier Analysis for Indian States
Abstract: It has been increasingly recognised that apart from medical inputs, a wide range of socio-economic factors plays an important role in determining health. The objective of the study has been to ascertain the impact of predominantly medical inputs on health status of individuals and simultaneously capture the influence of such socio-economic variables on the (in) efficiency prevalent in the production process (of health). A stochastic production frontier with inefficiency effects has been estimated based on data drawn from the fourteen major states of India over the time frame of 1986 to 1995. The frontier estimates throw light on some conflicting issues facing the policy-makers. Most importantly the results revealed that the beneficial impact of economic growth is not large enough to supersede that of medical services. Consequently greater priority ought to be given to the enhancement of health sector and utilisation of medical services. Finally the index of efficiency, generated by the frontier model, highlights the blatant regional disparity prevalent in India and draws attention to the need for pursuing policies directed towards eradication of this existing regional imbalance.
Publication Year: 2001
Publication Date: 2001-09-03
Language: en
Type: article
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Cited By Count: 5
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