Multidimensional performance assessment using dominance criteria

Nils Gutacker (nils.gutacker@york.ac.uk) and Andrew Street

No 115cherp, Working Papers from Centre for Health Economics, University of York

Abstract: Public sector organisations pursue multiple objectives and serve a number of stakeholders. But stakeholders are rarely explicit about the valuations they attach to different objectives, nor are these valuations likely to be identical. This complicates the assessment of their performance because no single set of weights can be legitimately chosen by regulators to aggregate outputs into unidimensional composite scores. We propose the use of dominance criteria in a multidimensional performance assessment framework to identify best practice and poor performance under relatively weak assumptions about stakeholders’ preferences. We estimate multivariate multilevel models to study providers of hip replacement surgery in the English NHS with respect to their performance in terms of length of stay, readmission rates, post-operative patient-reported health status and waiting time. We find substantial correlation between objectives and demonstrate that ignoring the correlation can lead to incorrect assessments of performance.

Keywords: Performance assessment; provider classification; multidimensional; multilevel modelling (search for similar items in EconPapers)
Pages: 34 pages
Date: 2015-09
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Citations: View citations in EconPapers (2)

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