scholarly journals Nonparametric estimation of a primary care production function in urban Brazil

2020 ◽  
Vol 10 (1) ◽  
Author(s):  
Bruno Wichmann ◽  
Roberta Wichmann

Abstract Background The Brazilian public health system is one of the largest health systems in the world, with a mandate to deliver medical care to more than 200 million Brazilians. The objective of this study is to estimate a production function for primary care in urban Brazil. Our goal is to use flexible estimates to identify heterogeneous returns and complementarities between medical capital and labor. Methods We use a large dataset from 2012 to 2016 (with more than 400 million consultations, 270 thousand physicians, and 11 thousand clinics) to nonparametrically estimate a primary care production function and calculate the elasticity of doctors’ visits (output) to two inputs: capital stock (number of clinics) and labor (number of physicians). We benchmark our nonparametric estimates against estimates of a Cobb-Douglas (CD) production function. The CD model was chosen as a baseline because it is arguably the most popular parametric production function model. By comparing our nonparametric results with those from the CD model, our paper shed some light on the limitations of the parametric approach, and on the novelty of nonparametric insights. Results The nonparametric results show significantly heterogeneity of returns to both capital and labor, depending on the scale of operation. We find that diseconomies of scale, diminishing returns to scale, and increasing returns to scale are possible, depending on the input range. Conclusions The nonparametric model identifies complementarities between capital and labor, which is essential in designing efficient policy interventions. For example, we find that the response of primary care consultations to labor is steeper when capital level is high. This means that, if the goal is to allocate labor to maximize increases in consultations, adding physicians in cities with a high number of clinics is preferred to allocating physicians to low medical infrastructure municipalities. The results highlight how the CD model hides useful policy information by not accounting for the heterogeneity in the data.

Author(s):  
Jerzy Marzec ◽  
Andrzej Pisulewski

In the present study, we have investigated several competing stochastic frontier models which differ in terms of the form of the production function (Cobb-Douglas or translog), inefficiency distribution (half-normal or exponential distribution) and type of prior distribution for the parameters (hierarchical or non-hierarchical from the Bayesian point of view). This last distinction corresponds to a difference between random coefficients and fixed coefficients models. Consequently, this study aims to examine to what extent inferences about estimates of farms' efficiency depend on the above assumptions. Moreover, the study intends to investigate how far the production function's characteristics are affected by the choice of the type of prior distribution for the parameters. First of all, it was found that the form of the production function does not impact the efficiency scores. Secondly, we found that measures of technical efficiency are sensitive to distributional assumptions about the inefficiency term. Finally, we have revealed that estimates of technical efficiency are reasonably robust to the prior information about the parameters of crop farms' production technology. There is also a resemblance in the elasticity of output with respect to inputs between the models considered in this paper. Additionally, the measurement of returns to scale is not sensitive to model specification.


2018 ◽  
Vol 42 (4) ◽  
pp. 647-663 ◽  
Author(s):  
M Khatun ◽  
MA Rashid ◽  
MAM Miah ◽  
S Khandoker ◽  
MT Islam

The study was undertaken to find out the profitability and export potentialities of pumpkin cultivation in the char lands of Rangpur and Gaibandha district of Bangladesh. A total of 120 pumpkin growers taking 60 farmers from each district were randomly selected for the study. Descriptive statistics was used to analyze cost and return of pumpkin. The Cobb-Douglass production function was used to estimate the coefficients of the various variables analysed and MPP, MVP and resource use efficiency were also used to estimate the efficiency of resource use in the study area. The study revealed that net returns were positive for pumpkin cultivation. However, the higher net return was estimated for Rangpur district (Tk 105,299/ha) compared to Gaibandha (Tk.93, 936/ha). Bangladesh had comparative advantage for producing pumpkin as the estimates of domestic resource cost (DRC) was less than one. The value of DRC for pumpkin was less than unity implied that the production of pumpkin would be highly efficient for export promotion. The estimated results of the Cobb-Douglass production function showed increasing returns to scale. The results of the efficiency computation indicated that inputs were underutilized. Farmers in the study area used too little input to cultivate pumpkin that means the cost of using inputs is less than the value of marginal product. This suggests that farmers can incur more cost for these inputs to be efficient and then production will be increased.Bangladesh J. Agril. Res. 42(4): 647-663, December 2017


2019 ◽  
Vol 29 (Supplement_4) ◽  
Author(s):  
B Rechel

Abstract Background There are almost universal calls for improved collaboration between public health and primary care, but it is less clear how this can be achieved in practice. This presentation summarises key findings from an Observatory policy brief on how to enhance collaboration. Methods The policy brief iss based on a systematic review of the academic literature on collaboration between public health and primary care, searching the databases Medline and Embase for articles published since 2010. After title, abstract and full-text screening, 46 articles were retained and included in the review. Results Most academic articles on collaboration between primary care and public health are concerned with the United States and Canada. From the European countries, the Netherlands and the United Kingdom are most strongly represented. There is also a very uneven timeline in publication, with a spike in articles published in 2012, following an influential Institute of Medicine report. Research has identified organizational models of primary care that are conducive to collaboration with public health, as well as systemic, organizational and interpersonal factors that can facilitate or hinder collaboration. However, the relative importance of these factors remains poorly understood. Improved collaboration between public health and primary care promises to bring major benefits, but these are rarely documented in the literature so far. Furthermore, collaboration may also bring certain risks, such as competition over scarce resources. Conclusions The literature on collaboration between public health and primary care points to many illustrative examples, but also identifies relevant principles and factors that can hinder or facilitate collaboration. Policy interventions to improve collaboration will need to be mindful of potential risks and should aim to demonstrate benefits, which will help to increase buy-in from primary care and public health professionals and the public. Panelists: Ilana Ventura Federal Ministry of Labour, Social Affairs, Health and Consumer Protection, Austrian Government, Vienna, Austria Contact: [email protected] Birger Forsberg International Health, Karolinska Institutet, Stockholm, Sweden Contact: [email protected] Rémi Pécault-Charby Caisse Nationale de l’Assurance Maladie, Paris, France Contact: [email protected]


2016 ◽  
Vol 20 (8) ◽  
pp. 2173-2209 ◽  
Author(s):  
Manh-Hung Nguyen ◽  
Phu Nguyen-Van

This paper considers an optimal endogenous growth model where the production function is assumed to exhibit increasing returns to scale and two types of resource (renewable and nonrenewable) are imperfect substitutes. Natural resources, labor, and physical capital are used in the final goods sector and in the accumulation of knowledge. Based on results in the calculus of variations, a direct proof of the existence of an optimal solution is provided. Analytical solutions for the planner case, balanced growth paths, and steady states are found for a specific CRRA utility and Cobb–Douglas production function. It is possible to have long-run growth where both energy resources are used simultaneously along the equilibrium path. As the law of motion of the technological change is not concave, reflecting the increasing returns to scale, so that the Arrow–Mangasarian sufficiency conditions do not apply, we provide a sufficient condition directly. Transitional dynamics to the steady state from the theoretical model are used to derive three convergence equations of output intensity growth rate, exhaustible resource growth rate, and renewable resource growth rate, which are tested based on OECD data on production and energy consumption.


2001 ◽  
Vol 53 (3) ◽  
pp. 207-214
Author(s):  
Kern O. Kymn ◽  
John J. Hisnanick

2011 ◽  
Vol 3 (2) ◽  
pp. 112
Author(s):  
Martin Williams ◽  
Tuan Ton-That

A nonhomogeneous production is used to study the features of the production technology across U.S. cities. We compute marginal productivities and scale elasticities for different levels of inputs and outputs. The form of the production function allows variable returns to scale. We can also test the Cobb-Douglas and constant elasticity of substitution forms within the nonhomogeneous specification. Conclusions are drawn concerning returns to scale across cities of different sizes.


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