Investigating the impact of endogeneity on inefficiency estimates in the application of stochastic frontier analysis to nursing homes

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dc.contributor.authorMutter, Ryan L.
dc.contributor.authorGreene, William H.
dc.contributor.authorSpector, William
dc.contributor.authorRosko, Michael D.
dc.contributor.authorMukamel, Dana B.
dc.date.accessioned2021-07-15T17:13:22Z
dc.date.available2021-07-15T17:13:22Z
dc.date.issued2012-03-20
dc.description.abstractThis paper examines the impact of an endogenous cost function variable on the inefficiency estimates generated by stochastic frontier analysis (SFA). The specific variable of interest in this application is endogenous quality in nursing homes. We simulate a dataset based on the characteristics of for-profit nursing homes in California, which we use to assess the impact on SFA-generated inefficiency estimates of an endogenous regressor under a variety of scenarios, including variations in the strength and direction of the endogeneity and whether the correlation is with the random noise or the inefficiency residual component of the error term. We compare each of these cases when quality is included and excluded from the cost equation. We provide evidence of the impact of endogeneity on inefficiency estimates yielded by SFA under these various scenarios and when the endogenous regressor is included and excluded from the model.en
dc.description.sponsorshipThis paper does not represent the policy of either the Agency for Healthcare Research and Quality (AHRQ) or the U.S. Department of Health and Human Services (DHHS). The views expressed herein are those of the authors and no official endorsement by AHRQ or DHHS is intended or should be inferred. This research was partially funded by contracts from AHRQ: AHRQ Contract Number HHSP233200900285P (Michael Rosko, Dana Mukamel) and HHSN263200500063293 (William Greene).en
dc.description.urihttps://link.springer.com/article/10.1007/s11123-012-0277-zen
dc.format.extent10 pagesen
dc.genrejournal articlesen
dc.identifierdoi:10.13016/m2yrii-bgix
dc.identifier.citationMutter, Ryan L. et al.; Investigating the impact of endogeneity on inefficiency estimates in the application of stochastic frontier analysis to nursing homes; Journal of Productivity Analysis, volume 39, pages101–110, 20 March, 2012; https://doi.org/10.1007/s11123-012-0277-zen
dc.identifier.urihttps://doi.org/10.1007/s11123-012-0277-z
dc.identifier.urihttp://hdl.handle.net/11603/21934
dc.language.isoenen
dc.publisherSpringer Natureen
dc.relation.isAvailableAtThe University of Maryland, Baltimore County (UMBC)
dc.relation.ispartofUMBC School of Public Policy Collection
dc.rightsPublic Domain Mark 1.0*
dc.rightsThis item is likely protected under Title 17 of the U.S. Copyright Law. Unless on a Creative Commons license, for uses protected by Copyright Law, contact the copyright holder or the author.
dc.rightsThis work was written as part of one of the author's official duties as an Employee of the United States Government and is therefore a work of the United States Government. In accordance with 17 U.S.C. 105, no copyright protection is available for such works under U.S. Law.
dc.rights.urihttp://creativecommons.org/publicdomain/mark/1.0/*
dc.titleInvestigating the impact of endogeneity on inefficiency estimates in the application of stochastic frontier analysis to nursing homesen
dc.typeTexten

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