Ownership, Incentives and Hospitals

This article analyzes hospital privatization by comparing costs and quality between different ownership forms. We put the attention on the distinction between public hospitals and private hospitals with public funding. Using information about Spanish hospitals, we have found that private hospitals provide services at a lower cost at expenses of lower quality. We observe that property rights theory is fulfilled at least for the Spanish hospital market. The way that Heath Authorities finance publicly funded hospitals may be responsible for the differences in incentives between public and private centers. We argue that the trade-off between costs and quality could be minimized by designing financing contracts with fixed and variable components.Privatization, Hospitals, Costs, Quality. JEL classification:I11; L15; L33

Non-parametric adjustment for covariates when estimating a treatment effect

We consider a non-parametric model for estimating the effect of a binary treatment on an outcome variable while adjusting for an observed covariate. A naive procedure consists in performing two separate non-parametric regression of the response on the covariate: one with the treated individuals and the other with the untreated. The treatment effect is then obtained by taking the difference between the two fitted regression functions. This paper proposes a backfitting algorithm which uses all the data for the two above-mentioned non-parametric regression. We give theoretical results showing that the resulting estimator of the treatment effect can have lower finite sample variance. This improvement may be achieved at the cost of a larger bias. However, in a simulation study we observe that mean squared error is lowest for the proposed backfitting estimator. When more than one covariate is observed our backfitting estimator can still be applied by using the propensity score (probability of being treated for a given setup of the covariates). We illustrate the use of the backfitting estimator in a several covariate situation with data on a training program for individuals having faced social and economic problems.Analysis of covariance; backfitting algorithm; linear smoothers; propensity score

Local polynomial regression with truncated or censored response

Truncation or censoring of the response variable in a regression model is a problem in many applications, e.g. when the response is insurance claims or the durations of unemployment spells. We introduce a local polynomial re­gression estimator which can deal with such truncated or censored responses. For this purpose, we use local versions of the STLS and SCLS estimators of Powell (1986) and the QME estimator of Lee (1993) and Laitila (2001). The asymptotic properties of our estimators, and the conditions under which they are valid, are given. In addition, a simulation study is presented to investigate the finite sample properties of our proposals.Non-parametric regression; truncation; censoring; asymptotic properties

Foggy clouds and cloudy fogs: a real need for coordinated management of fog-to-cloud computing systems

The recent advances in cloud services technology are fueling a plethora of information technology innovation, including networking, storage, and computing. Today, various flavors have evolved of IoT, cloud computing, and so-called fog computing, a concept referring to capabilities of edge devices and users' clients to compute, store, and exchange data among each other and with the cloud. Although the rapid pace of this evolution was not easily foreseeable, today each piece of it facilitates and enables the deployment of what we commonly refer to as a smart scenario, including smart cities, smart transportation, and smart homes. As most current cloud, fog, and network services run simultaneously in each scenario, we observe that we are at the dawn of what may be the next big step in the cloud computing and networking evolution, whereby services might be executed at the network edge, both in parallel and in a coordinated fashion, as well as supported by the unstoppable technology evolution. As edge devices become richer in functionality and smarter, embedding capacities such as storage or processing, as well as new functionalities, such as decision making, data collection, forwarding, and sharing, a real need is emerging for coordinated management of fog-to-cloud (F2C) computing systems. This article introduces a layered F2C architecture, its benefits and strengths, as well as the arising open and research challenges, making the case for the real need for their coordinated management. Our architecture, the illustrative use case presented, and a comparative performance analysis, albeit conceptual, all clearly show the way forward toward a new IoT scenario with a set of existing and unforeseen services provided on highly distributed and dynamic compute, storage, and networking resources, bringing together heterogeneous and commodity edge devices, emerging fogs, as well as conventional clouds.Peer ReviewedPostprint (author's final draft

Ownership, Incentives and Hospitals

This article analyzes hospital privatization by comparing costs and quality between different ownership forms. We put the attention on the distinction between public hospitals and private hospitals with public funding. Using information about Spanish hospitals, we have found that private hospitals provide services at a lower cost at expenses of lower quality. We observe that property rights theory is fulfilled at least for the Spanish hospital market. The way that Heath Authorities finance publicly funded hospitals may be responsible for the differences in incentives between public and private centers. We argue that the trade-off between costs and quality could be minimized by designing financing contracts with fixed and variable components