Determinants of health sector efficiency: evidence from a two-step analysis on 30 OECD countries

Abstract

This study aims to assess the efficiency of expenditure on health in 30 OECD countries over the period 2005-2015 by regressing Data Envelopment Analysis (DEA) output efficiency scores on discretionary and non-discretionary variables, with a two-stage DEA/Tobit and bootstrap procedure. We show that health inefficiency in OECD countries is related to per capita GDP, vaccine coverage and tobacco consumption, also controlling for geographical and institutional variables (i.e., bureaucratic red tape and weather temperature)