Does neighbours' grass matter? Testing spatial dependent heterogeneity in technical efficiency of Italian hospitals

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From: Social Science & Medicine(Vol. 265)
Publisher: Elsevier Science Publishers
Document Type: Report
Length: 231 words

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Abstract :

Keywords Hospital technical efficiency; Regional effects; Spatial stochastic frontier Highlights * The presence of spatial dependence is tested on a large sample of Italian hospitals. * Institutional factors are key factors for understanding hospital technical efficiency. * Neighbouring effects are not relevant in hospital technical efficiency in Italy. * The empirical findings are explained by the regional organization of the Italian NHS. Abstract Testing for spatial dependent heterogeneity in hospital technical efficiency is crucial for separating spatial issues from the effects of regional institutional factors. We apply the Spatial Stochastic Frontier Analysis for studying the presence of spatial dependence by using novel data on Italian hospitals. This approach provides both a robust estimation of hospital technical efficiency and a careful assessment of spatial and regional issues. We find empirical support for the idea that regional and institutional factors are more important than neighbouring effects when looking at heterogeneity in hospital technical efficiency across Italy. The relevance of the regional organization of the Italian hospital system can justify our results. We also discuss the limitations of our analysis and provide sensitivity checks. Author Affiliation: (a) Department of Economics and Business, University of Catania, Italy (b) Department of Finance, Ministry of Economy and Finance, Italy * Corresponding author. Article History: Revised 26 October 2020; Accepted 5 November 2020 Byline: Marina Cavalieri (a), Paolo Di Caro (b), Calogero Guccio [] (a,*), Domenico Lisi (a)

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Gale Document Number: GALE|A648821941