Measurement of Technical Efficiency of the Health-care Sector in Assam: An Application of Nonparametric Method

Abstract

The study has used a nonparametric method to estimate the technical efficiency of health-care sector in the substate level of Assam. The study is based on secondary data for the year 2018–2019. The average constant return to scale technical efficiency score is 0.81, while the average efficiency scores in variable return to scale technical efficiency and scale efficiency (SE) are 0.88 and 0.92 respectively. Moreover, seven (26%) districts are technically efficient. The major cause of inefficiency is the poor management of health-care sector. Four (15%) districts Chirang, Dima Hasao, Baksa, and Udalguri have achieved least efficiency score, while five (19%) districts Kamrup (Rural), Sivasagar, Dibrugarh, Lakhimpur, and Goalpara have the highest potentiality to achieve efficiency level. The study is static in nature. However, it will help the health policymakers to improve management and size of operation of health sector in the state.

Keywords

• constant return to scale
• data envelopment analysis
• healthcare
• nonparametric
• scale efficiency
• technical efficiency
• variable return to scale