This study has the purpose of assessing the changes in the efficiency scores caused by any additional variable introduced in a Stochastic Frontier Analysis, one of the most spread parametric methods which is able to differentiate the technical inefficiency of the unit assessed from the statistical noise and other exogenous factors that affect efficiency. The study will begin with the model Health Adjusted Life expectancy as input and Life Expectancy as output. After analyzing the results, maternal mortality will be added as input in the set and the model will be re-run. Data will be interpreted. A third input, Gini index, will be introduced in the last part of the analysis, in order to assess the new results of the model. As secondary objective, the study will evaluate the efficiency of the 27 European Union Health Systems and the changes from one model to another. The results show that by adding variables, the stochastic frontier and the efficiency scores change. Nonetheless, the direction of change is not random and the results are consistent with the theory.

“Alexandru Ioan Cuza University” of Iasi no 22 Blvd Carol 1 Iasi 700505 Romania

Changes in efficiency scores by adding variables in stochastic frontier analysis [elektronický zdroj] /

XLIII. konference České demografické společnosti. Praha, 22.-23. května 2013

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