The Efficiency of Health Production: Re-estimating the WHO Panel Data Using Parametric and Nonparametric Approaches to Provide Additional Information

The World Health Report 2000 focuses on the performance of health care systems around the globe. The report uses efficiency measurement techniques to create a league table of health care systems, highlighting good and bad performers. Efficiency is measured using panel data methods. This paper suggests that the WHO's estimation procedure is too narrow and that contextual information is hidden by the use of one method. This paper uses and validates a range of parametric and non-parametric empirical methods to measure efficiency using the WHO data. The rankings obtained are compared to the WHO league table and we demonstrate that there are trends and movements of interest within the league tables. We recommend that the WHO broaden its range of techniques in order to reveal this hidden information.