Exit and Inefficiency: The Effects of Ownership Type

Mary E. Deily, Niccie L. McKay and Fred H. Dorner

Journal of Human Resources, 2000, vol. 35, issue 4, 734-747

Abstract: This study uses data on hospital closures to examine the relation between exit and inefficiency in an industry where for-profit, not-for-profit, and government firms coexist. The likelihood of hospital exit over the period 1986-91 is estimated as a function of hospital relative inefficiency, ownership type, and other factors, where hospital relative inefficiency is measured using residuals from estimation of a stochastic frontier cost function. We find that less efficient hospitals were more likely to exit when ownership was for-profit or not-for-profit, but that relative inefficiency did not have a significant effect on the probability of exit for government hospitals.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://www.jstor.org/stable/pdfplus/146370
A subscription is required to access pdf files. Pay per article is available.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:35:y:2000:i:4:p:734-747

Access Statistics for this article

More articles in Journal of Human Resources from University of Wisconsin Press
Bibliographic data for series maintained by ().