Estimating an hedonic translog cost function for the home health care industry

Cynthia Dudzinski, O. Homer Erekson and Andrea Ziegert

Applied Economics, 1998, vol. 30, issue 9, 1259-1267

Abstract: Medicare home health care plays an important role in providing cost effective care for the chronically ill and elderly. Long seen as a cost effective substitute for nursing home care, home care has become even more important with expenditures increasing by 31.4% from 1990 to 1996. The purpose of this paper is to provide a short run cost analysis of a sample of home health care providers to gain insight into the efficient provision of home health care services. This paper is a significant improvement over previous studies in that it uses a nationwide database to more accurately represent the multiproduct nature of the industry and uses an hedonic translog cost estimation with desirable economic properties.

Date: 1998
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DOI: 10.1080/000368498325147

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