Relative economic efficiency in Texas nursing facilities: A profit function analysis
The purpose of this analysis is to examine the relative economic efficiency of profit-seeking versus nonprofit nursing facilities. A Cobb-Douglas profit function is used on cross-sectional data to determine the technical efficiency, price efficiency, and overall economic efficiency of Texas nursing facilities. Ownership form influences the profit level of the firm. Profit-seeking firms are more economically efficient than their nonprofit counterparts. Inclusion of price efficiency analyses reinforces profit-seeking firms’ superior technical efficiency. Additionally, nursing facilities are price takers in the output market as well as in resource markets, indicating effective industry regulation. Copyright Springer 1999
Year of publication: |
1999
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Authors: | Knox, Kris ; Blankmeyer, Eric ; Stutzman, J. |
Published in: |
Journal of Economics and Finance. - Springer, ISSN 1055-0925. - Vol. 23.1999, 3, p. 199-213
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Publisher: |
Springer |
Saved in:
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