nep-eur New Economics Papers
on Microeconomic European Issues
Issue of 2013‒02‒16
twenty papers chosen by
Giuseppe Marotta
University of Modena and Reggio Emilia

  1. The European Crisis and Migration to Germany: Expectations and the Diversion of Migration Flows By Bertoli, Simone; Brücker, Herbert; Fernández-Huertas Moraga, Jesús
  2. Unemployment and Subsequent Employment Stability: Does Labour Market Policy Matter? By Wulfgramm, Melike; Fervers, Lukas
  3. The EU Emission Trading Scheme. Sectoral Allocation Patterns and Factors Determining Emission Changes By Claudia Kettner; Daniela Kletzan-Slamanig; Angela Köppl
  4. Gender Differences in German Wage Mobility By Aretz, Bodo
  5. Lessons Learned from the Largest Tenure Mix Operation in the World: Right to Buy in the United Kingdom By Kleinhans, Reinout; van Ham, Maarten
  6. Universities, Public Research and Regional Innovation Output: An Empirical Study of 19 Technologies in Germany By Thomas Brenner; Charlotte Schlump
  7. CO2 emissions in German, Swedish and Colombian manufacturing industries By Alexander Cotte Poveda - Clara Pardo Martínez
  8. Does social capital matter for European regional growth? By Jesús Peiró-Palomino; Anabel Forte Deltell
  9. Does renegotiation of financial contracts matter for shareholders? Empirical evidence from Europe By Christophe Godlewski
  10. Free and open source software underpinning the european forest data centre By Rodriguez Aseretto, Dario; Di Leo, Margherita; de Rigo, Daniele; Corti, Paolo; McInerney, Daniel; Camia, Andrea; San-Miguel-Ayanz, Jesús
  11. Long-Run Effects of Childhood Shocks on Health in Late Adulthood: Evidence from the Survey of Health, Ageing, and Retirement in Europe By Nicole Halmdienst; Rudolf Winter-Ebmer
  12. Does Remuneration Affect the Discipline and the Selection of Politicians? Evidence from Pay Harmonization in the European Parliament By Thomas Braendle
  13. Accounting for trends in health poverty: A decomposition analysis for Britain, 1991-2008 By Michał Brzeziński
  14. Missing Women in the United Kingdom By Adamou, Adamos; Drakos, Christina; Iyer, Sriya
  15. Learning and Wellbeing Trajectories Among Older Adults in England By Andrew Jenkins; Tarek Mostafa
  16. Friends and health of the workers in Italy By Fiorillo, Damiano
  17. Do Policies that Reduce Unemployment Raise its Volatility?: Evidence from OECD Countries By Alain de Serres; Fabrice Murtin
  18. Impact of external knowledge acquisition strategies on innovation – A comparative study based on Dutch and Swiss panel data By Spyros Arvanitis; Martin Wörter; Pierre Mohnen; Boris Lokshin
  19. Complexity of Treatment, and Changes in Efficiency and Productivity for Directly Managed Italian Hospitals By PINTO, Claudio
  20. Dependency evolution in Spanish disabled population : a functional data analysis approach By Irene Albarrán Lozano; Pablo Alonso González; Ana Arribas Gil

  1. By: Bertoli, Simone (CERDI, University of Auvergne); Brücker, Herbert (Institute for Employment Research (IAB), Nuremberg); Fernández-Huertas Moraga, Jesús (FEDEA, Madrid)
    Abstract: The analysis of how the economic crisis in Europe has reshaped migration flows faces two challenges: (i) the confounding influence of correlated changes in the attractiveness of alternative destinations, and (ii) the role of rapidly changing expectations about the evolution of the economic conditions in various countries. This paper addresses the first challenge by controlling for multilateral resistance to migration, and the second one by incorporating 10-year bond yields as an explanatory variable in a study of European bilateral migration flows to Germany between 2006 and 2012. We show that, while expectations and current economic conditions at origin are significant determinants of migration, diversion effects account for 78 percent of the observed increase in German gross migration inflows.
    Keywords: international migration, multiple destinations, diversion, expectations
    JEL: F22 O15 J61
    Date: 2013–01
  2. By: Wulfgramm, Melike (University of Bremen); Fervers, Lukas (University of Bremen)
    Abstract: This paper analyses the effect of unemployment insurance generosity and active labour market policy on reemployment stability in Europe. Using EU‐SILC and OECD data, we conduct discrete time survival analyses with shared frailty specification to identify policy effects at the micro and macro level. Empirical evidence suggests that unemployment benefit receipt is associated with longer reemployment duration at the individual level. Furthermore, countries with more generous unemployment insurance and higher ALMP spending show a more sustainable reintegration record of previously unemployed workers. These results point to a policy trade‐off between the well‐confirmed disincentive and locking‐in effect of unemployment benefits and ALMP programmes on the one hand, and their positive effect on reemployment stability on the other hand.
    Keywords: reemployment duration, job match quality, post‐unemployment employment stability, active labour market policy, unemployment benefits
    JEL: J64 J65 J68
    Date: 2013–01
  3. By: Claudia Kettner (WIFO); Daniela Kletzan-Slamanig (WIFO); Angela Köppl (WIFO)
    Abstract: The EU Emission Trading Scheme (EU ETS) that covers emitters from industry and energy supply representing 40 percent of the EU's greenhouse gas emissions is the biggest implementation of a cap-and-trade scheme worldwide. In this paper, we analyse sectoral allocation caps focusing on three emission intensive sectors ("power and heat", "cement and lime", "pulp and paper"), assess the development of emissions and discuss the main drivers for emissions in these sectors since the start of the EU ETS. Our analysis of allocation patterns shows that "power and heat" is the only sector permanently facing a stringent cap. The disaggregated analysis of the development of CO2 emissions also reveals pronounced sectoral disparities, which points at differences in the availability of emission abatement options. The data for cement and lime production show changes in CO2 intensity pointing at an increased import of clinker. For paper and pulp production and for power and heat generation improvements in emission intensities and to a lesser extent energy intensities can be observed, reflecting the role of fuel shifts in short-term emission reductions.
    Keywords: EU Emission Trading Scheme, allocation caps, decomposition analysis
    Date: 2013–02–05
  4. By: Aretz, Bodo (ZEW Mannheim)
    Abstract: This paper analyzes the evolution of wage inequality and wage mobility separately for men and women in West and East Germany over the last four decades. Using a large administrative data set which covers the years 1975 to 2008, I find that wage inequality increased and wage mobility decreased for male and female workers in East and West Germany. Women faced a higher level of wage inequality and a lower level of wage mobility than men in both parts of the country throughout the entire observation period. The mobility decline was sharper in East Germany so that the level of wage mobility has fallen below that of West Germany over time. Looking at long-term mobility, a slowly closing gap between men and women is observed.
    Keywords: wage mobility, wage inequality, administrative data
    JEL: J31 D63
    Date: 2013–01
  5. By: Kleinhans, Reinout (Delft University of Technology); van Ham, Maarten (Delft University of Technology)
    Abstract: In the last few decades, urban renewal policies have taken firm root in many Western European countries. Underlying these renewal policies is a strong belief in negative neighborhood effects of living in poverty concentration areas, often neighborhoods with a large share of social housing. In Europe, great importance is attached to creating a more diverse housing stock (in terms of tenure and dwelling types) and as a means to establish a more socially mixed neighborhood population. Mixed housing strategies are stated explicitly by governments in the Netherlands, the United Kingdom, Germany, France, Finland and Sweden. The idea is that mixing homeowners with social renters will create a more diverse socio-economic mix in neighborhoods, removing the potential of negative neighborhood effects. By far the largest tenure mix operation in Europe is the Right to Buy (RTB) scheme in the United Kingdom. Since the 1970s, over 2.7 million social rented houses have been sold with large discounts, mainly to sitting tenants. In this paper we synthesize the outcomes of RTB with regard to neighborhood impacts: residualisation, neighborhood stability, tenure mix and social mix, social interactions, and dwelling maintenance. Although we acknowledge substantial socioeconomic benefits of the RTB for many individual residents, we find that the neighborhood outcomes of RTB are by no means solely beneficial.
    Keywords: Right to Buy, tenure mix, neighbourhood effects, urban renewal, residential mobility, poverty neighbourhoods
    JEL: J61 R21 R23 R28
    Date: 2013–01
  6. By: Thomas Brenner (Philipps-Universität Marburg); Charlotte Schlump (Philipps-Universität Marburg)
    Abstract: It has been repeatedly shown that universities and public research institutes contribute to local innovation generation and facilitation. The mechanisms behind this contribution are well discussed in the literature. However, detailed empirical examinations are missing. We analyse the impact of universities and public research on regional innovation output. Thereby we analyse separately 19 technologies and distinguish whether university education and public research are rather innovation generators or innovation facilitators. All analyses are conducted on German data.
    Keywords: regional innovation systems, innovation output, university, public research
    JEL: C13 I25 O31 R12
    Date: 2013–02–08
  7. By: Alexander Cotte Poveda - Clara Pardo Martínez
    Abstract: This study evaluates and compares the trends in CO2 emissions for the manufacturing industries of three countries: two developed countries (Germany and Sweden) that have applied several measures to promote a shift towards a low-carbon economy and one developing country (Colombia) that has shown substantial improvements in the reduction of CO2 emissions. This analysis is conducted using panel data cointegration techniques to infer causality between CO2 emissions, production factors and energy sources. The results indicate a trend of producing more output with less pollution. The trends for these countries’ CO2 emissions depend on investment levels, energy sources and economic factors. Furthermore, the trends in CO2 emissions indicate that there are emission level differences between the two developed countries and the developing country. Moreover, the study confirms that it is possible to achieve economic growth and sustainable development while reducing greenhouse gas emissions, as Germany and Sweden demonstrate. In the case of Colombia, it is important to encourage a reduction in CO2 emissions through policies that combine technical and economic instruments and incentivise the application of new technologies that promote clean and environmentally friendly processes.
    Date: 2013–02–05
  8. By: Jesús Peiró-Palomino (Department of Economics, Universitat Jaume I, Castellón, Spain); Anabel Forte Deltell (Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: This article analyzes the role of different elements of social capital in economic growth for a sample of 85 European regions during the period 1995 - 2008. Much has been said about social capital in the last two decades, but studies for the European regional context are scant, and those analyzing periods after the nineties are nonexistent. The improvements in data availability allow us to consider the traditionally disregarded Central and Eastern European regions. This is especially interesting, since they are all transition economies that recently joined to the European Union and show remarkably low levels of social capital. Additionally, we follow the Bayesian paradigm, which not only allows us to make direct inference on the parameters to be estimated, but also deals with parameter uncertainty, leading to a deeper understanding of the data. Contrary to other contributions for the European context, results suggest, among other findings, that trust and social norms might have the major implications for regional growth, whereas the role of active participation in groups does not seem to be so well defined.
    Keywords: Social capital, economic growth, European regions, Bayesian inference
    JEL: C15 R10 Z13
    Date: 2013
  9. By: Christophe Godlewski (LaRGE Research Center, Université de Strasbourg)
    Abstract: Using a large sample of bank loan renegotiations by European firms, I show that renegotiation of financial contracts matters for shareholders and can increase their wealth. I find that amendments to financial covenants and to loan amounts increase borrower’s cumulative abnormal return by 10% to 15%. Early and less frequent renegotiations of bilateral loans with short maturity also imply a positive stock market reaction. Amendments signaling the early accrual of new, valuable and positive information allow increasing shareholders value. The renegotiation of financial contracts bears a certification role as contracts become more efficient over time, to the benefits of the shareholders.
    Keywords: renegotiation, financial contracts, bank loans, shareholders value, event studies, Europe.
    JEL: G14 G20
    Date: 2013
  10. By: Rodriguez Aseretto, Dario; Di Leo, Margherita; de Rigo, Daniele; Corti, Paolo; McInerney, Daniel; Camia, Andrea; San-Miguel-Ayanz, Jesús
    Abstract: Excerpt: Worldwide, governments are growingly focusing on free and open source software (FOSS) as a move toward transparency and the freedom to run, copy, study, change and improve the software. The European Commission (EC) is also supporting the development of FOSS [...]. In addition to the financial savings, FOSS contributes to scientific knowledge freedom in computational science (CS) and is increasingly rewarded in the science-policy interface within the emerging paradigm of open science. Since complex computational science applications may be affected by software uncertainty, FOSS may help to mitigate part of the impact of software errors by CS community- driven open review, correction and evolution of scientific code. The continental scale of EC science-based policy support implies wide networks of scientific collaboration. Thematic information systems also may benefit from this approach within reproducible integrated modelling. This is supported by the EC strategy on FOSS: "for the development of new information systems, where deployment is foreseen by parties outside of the EC infrastructure, [F]OSS will be the preferred choice and in any case used whenever possible". The aim of this contribution is to highlight how a continental scale information system may exploit and integrate FOSS technologies within the transdisciplinary research underpinning such a complex system. A European example is discussed where FOSS innervates both the structure of the information system itself and the inherent transdisciplinary research for modelling the data and information which constitute the system content. [...]
    Keywords: European Forest Data Centre; EFDAC; free software; Free Scientific Software; Free and Open Source Software; Europe; forest information system; European Forest Fire Information System; EFFIS; geospatial; geospatial tools; semantic array programming; morphological spatial pattern analysis; GUIDOS; reproducible research; environmental modelling
    JEL: Q23 C6 Q51 Q54 Q57 C44 C31 L86 C8
    Date: 2013
  11. By: Nicole Halmdienst (Department of Economics, University of Linz, Austria); Rudolf Winter-Ebmer
    Abstract: In this paper we address the long-run effects of childhood shocks on health in late adulthood. Applying a life-course approach and data from SHARE we estimate direct and indirect effects of shocks like relocation, dispossession, or hunger on health outcomes after age fifty. Having lived in a children’s home, in a foster family, or having suffered a period of hunger turn out to be the most detrimental. Using a finite mixture model, which allows to classify the associations between shocks and later health into a-priori unknown groups, we show that some adverse shocks have opposite effects for specific groups.
    Keywords: Early life experience, health, Europe
    JEL: J1 I12 J13
    Date: 2013–01
  12. By: Thomas Braendle (University of Basel)
    Abstract: <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">We study the harmonization of the base remuneration for the Members of the European</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">Parliament (MEPs) who were previously paid like national parliamentarians implying</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">large di_erences between the delegations from the 27 member countries. Based on detailed</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">information on individual MEPs between 2004 and 2011, we find that the reform, which</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">comes with an exceptional increase of, on average, 200 percent per national delegation, has</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">a positive incentive effect on in-office effort as approximated by engagement in speeches,</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">written declarations and drafted reports. However, a higher remuneration increases absence.</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">With respect to political selection, we find that a higher remuneration increases re-election</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">rates. The composition of the pool of MEPs in terms of (ex-ante) quality approximated with</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">formal education, previous political experience and occupational background is, however,</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">una_ected. If we restrict our attention to freshmen, we find that a higher remuneration is</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">related to a lower fraction of MEPs with previous political experience at the highest national</span></p> <p style="margin-bottom:0cm; margin-bottom:.0001pt; line-height: normal; text-autospace:none"><span style="font-size: 10.0pt; font-family:"Times New Roman","serif"">level.</span>
    Keywords: Politicas selection, remuneration of politicians, electoral system, European Parliament
    JEL: D72 D73
    Date: 2013
  13. By: Michał Brzeziński (Faculty of Economic Sciences, University of Warsaw)
    Abstract: We use data from the British Household Panel Survey to analyse changes in poverty of self-reported health from 1991 to 2008. Recently introduced ordinal counterparts of the classical Foster, Greer, Thorbecke (1984) (FGT) poverty measures are used to decompose changes in self-reported health poverty over time into within-group health poverty changes and population shifts between groups. We also provide statistical inference for these ordinal FGT indices. Results suggest that the health poverty rate increased independently of health poverty threshold chosen. In case of other ordinal FGT indices, which are sensitive to depth and distribution of health poverty, results depend on the health poverty threshold. The subgroup decompositions of changes in total health poverty in Britain suggest that the most important poverty-increasing factors include a rise of both health poverty and population shares of persons cohabiting and couples with no children as well as an increase of the population of retired persons.
    Keywords: health poverty, ordinal FGT measures, self-reported health, statistical inference, British Household Panel Survey
    JEL: I32 D63 I14
    Date: 2013
  14. By: Adamou, Adamos; Drakos, Christina; Iyer, Sriya
    Abstract: This paper investigates the gender-selection decisions of immigrants in the United Kingdom, using data from the 1971-2006 General Household Survey. We examine sex-selective abortion in the UK among immigrant families and the gender composition of previous births, conditional on socio-economic characteristics. Our key result is that immigrants balance their family after the birth of two sons, by having a daughter thereafter. Our study also is the first to estimate the number of missing women among Asian immigrants in a European country, contributing to research on the US and Canada that missing women are also a phenomenon of the developed world.
    JEL: J13 J15 O52 Z13
    Date: 2013–02–01
  15. By: Andrew Jenkins (Department of Quantitative Social Science, Institute of Education, University of London); Tarek Mostafa (Department of Quantitative Social Science, Institute of Education, University of London)
    Abstract: In an ageing society such as the UK, there is much interest in factors which can contribute to the wellbeing of older adults. It is not implausible to suppose that participation in learning could have beneficial effects, yet research on the wider benefits of learning has tended to focus on young people or those in mid-life and there is currently little evidence on the impact of learning on the wellbeing of older adults. Insofar as evidence does exist, most of it is qualitative, and while of much value and interest, it is based on very small, and possibly not very representative, samples of the older population. This research aimed to provide new, quantitative evidence drawing on a large, nationally representative sample, on the effects of participation in learning on the wellbeing of older adults. Our study used data from the English Longitudinal Study of Ageing (ELSA), a continuing, longitudinal survey of older adults which is representative of people aged 50 years and above living in private households in England. To measure wellbeing we used the CASP-19 instrument, a subjective wellbeing measure which was designed specifically for older adults and is available at all waves of the ELSA survey. ELSA respondents were asked about four types of learning activity: obtaining qualifications; attendance at formal education/training courses; membership of education, music or arts groups or evening classes; membership of sports clubs, gym and exercise classes. A range of regression techniques were used to analyse the relationship between learning and wellbeing. Multiple regression models were applied to data from ELSA wave 4. To take account of unobservable factors which might influence wellbeing we applied multiple regression to the change score between two waves of the survey and fitted fixed effects panel regressions to four waves of ELSA data. Learning was associated with higher wellbeing after controlling for a range of other factors. We found strong evidence that more informal types of learning were associated with higher wellbeing. There was also some evidence that obtaining qualifications was linked to higher wellbeing but no evidence that formal education/training courses were associated with higher wellbeing.
    Keywords: : Older adults, lifelong learning, wellbeing, benefits of learning, ELSA.
    JEL: I21 J14 J24
    Date: 2013–01–31
  16. By: Fiorillo, Damiano
    Abstract: Using a rich cross-sectional dataset, we estimate the effect of meetings with friends on self-perceived health, chronic conditions and limitations in daily activities of Italian employees. We address the self-selection of individuals in labour market using an Heckman selection model. Our main preliminary findings show that meetings with friends is positively correlated with self-perceived health, negatively associated with chronic conditions but not related to limitations in activities of daily living.
    Keywords: Health; income; friends; workers; Italy
    JEL: I12 Z0 C35
    Date: 2013–02–07
  17. By: Alain de Serres; Fabrice Murtin
    Abstract: In this paper we examine whether past labour market reforms aiming at reducing the rate of unemployment have raised its long-run volatility. Using non-linear panel data models applied to 24 OECD countries between 1985 and 2007, as well as Monte-Carlo techniques, we do not find any evidence of such policy trade-off. In contrast, we find that reduced unemployment benefit duration, more competition-inducing product market regulation and looser employment protection legislation are associated with a weaker persistence of unemployment over time, which implies a lower volatility of unemployment in the long run. More specifically, the evidence suggests that even in the case of reforms that may have raised the shortterm sensitivity of unemployment to business cycles (such as with the easing of employment protection), the weaker persistence effect dominates the higher cyclical volatility, implying a net reduction in long-term volatility.<P>Est-ce que les politiques qui réduisent le chômage augmentent sa volatilité ? : Une analyse empirique couvrant les pays de l'OCDE<BR>Cette étude examine dans quelle mesure les réformes passées du marché du travail visant à réduire le taux de chômage peuvent avoir eu pour effet d’accroître sa volatilité. L’analyse empirique combinant l’estimation de modèles non-linéaires basés sur des données de panel couvrant 24 pays de l’OCDE sur la période 1985-2007 et l’application de techniques de Monte Carlo, n’a pas mis à jour d’éléments permettant d’étayer l’hypothèse d’un tel conflit (trade-off) dans l’impact des politiques publiques du marché du travail. A l’inverse, l’étude montre qu’une réduction de la durée des bénéfices d’assurance chômage, une réforme de la réglementation conduisant à une plus forte concurrence sur le marché des produits et services, ainsi qu’un assouplissement de la législation sur la protection de l’emploi entraînent une plus faible persistance du chômage, impliquant une plus faible volatilité à long terme. Même dans les cas où des réformes ont pu accroître la sensibilité du chômage aux fluctuations cycliques, l’effet de cette plus grande variance cyclique sur la volatilité à long terme est plus que compensée par la baisse de la persistance.
    Keywords: unemployment, business cycle, labour market institutions, unemployment persistence, chômage, institutions du marché du travail, persistance du chômage, fluctuations cycliques
    JEL: E24 E32 J21
    Date: 2013–01–30
  18. By: Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Pierre Mohnen (Maastricht University); Boris Lokshin (Maastricht University)
    Abstract: There is growing evidence that firms increasingly adopt open innovation practices. In this paper we investigate the impact of two such external knowledge acquisition strategies, ‘buy’ and ‘cooperate’, on firm’s product innovation performance. Taking a direct (productivity) approach, we test for complementarity effects in the simultaneous use of the two strategies, and in the intensity of their use. Our results based on large panels of Dutch and Swiss innovating firms, suggest that while both ‘buy’ and ‘cooperate’ have a positive effect on innovation, there is little statistical evidence that using them simultaneously leads to higher innovation performance. Results from the Dutch sample provide some indication, that there are positive economies of scope in doing external and cooperative R&D simultaneously conditional on doing internal R&D.
    Keywords: Open innovation, R&D collaboration, make, buy strategies
    JEL: O31 O32
    Date: 2013–01
  19. By: PINTO, Claudio (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy)
    Abstract: Background: Data envelopment analysis (DEA) and the Malmquist index are frequently used in the hospital sector to measure efficiency. However, very few works are published for Italian hospitals, despite the fact that efficiency was the main driver guiding healthcare reform in the 1990s. Objectives: The objective of this study is derive technical efficiency and change in productivity of the Local Health Trust (LHT) in directly managed Italian hospitals. We will also explore whether the complexity of treated hospitals cases influences technical efficiency. Methods/approaches: The DEA technique and DEA-Malmquist index are used to derive technical efficiency, and changes in productivity and efficiency, for directly managed hospitals in Italy's public healthcare system. To control for the influence of the complexity of the treated cases on the technical efficiency, two DEA input models are examined. One of these models, weighs outputs with a case mix index (CMI) as a measure of the complexity of hospital treatment. Results: The results show that efficiency in the model not adjusted is on average 79,52% compared to 81,55 % efficiency in Model B (output adjusted with CMI), in efficiency level. In mean complexity of treatment, as measured with CMI, influence technical efficiency, as indicate in Table 5 and 6. Statistics tests reveal differences in the efficiency score distribution for Model A and Model B (adjusted). The influence of complexity of treatment on technical efficiency analysis, has hospital individual relevance. The Malmquist index reveals productivity improvement for 7 out of the 8 periods measured. Technical efficiency change is positive (improvement) between 2000 and 2005, and fall in 2006 and 2007. Technological change is positive in 1999-2000, 2000-2001, 2002-2003, 2005-2006, 2006-2007. Scale efficiency improves in 2000-2001, 2001-2002,2003-2004, 2004-2005. Practical implications: Between 1999 and 2007, for the sample, improved productivity was examined and attributed to an input reduction of the same output. This could mean that the reforms that took place in the 1990s were successful and that this direction is worth further pursuit. In light of these findings, one must make policy recommendations with caution, despite the fact, the complexity of treatments influence technical efficiency, hence the proportional reduction of the inputs vector.
    Keywords: Technical Efficiency; Productivity; Data Envelopment Analysis; DEA-Malmquist Index; Case Mix Index; Directly Managed Hospitals;
    JEL: C14 C33 D22 I12
    Date: 2013–01–31
  20. By: Irene Albarrán Lozano; Pablo Alonso González; Ana Arribas Gil
    Abstract: In a health context dependency is defined as lack of autonomy in performing basic activities of daily living that require the care of another person or significant help. However, this contingency, if present, changes throughout the lifetime. In fact, empirical evidence shows that, once this situation occurs, it is almost impossible to return to the previous state and in most cases the intensity increases. In this article, the evolution of the intensity in this situation is studied for the Spanish population affected by this contingency. Evolution in dependency can be seen as sparsely observed functional data, where for each individual we get a curve only observed at those points in which changes in the condition of his/her dependency occur. We use functional data analysis techniques such as curve registration, functional data depth or distance-based clustering to analyse this kind of data. This approach proves to be useful in this context since it takes into account the dynamics of the dependency process and provides more meaningful conclusions than simple pointwise or multivariate analysis. The database analysed comes from the Survey about Disabilities, Personal Autonomy and Dependency Situations, EDAD 2008, (Spanish National Institute of Statistics, 2008). The evaluation of the dependency situation for each person is ruled in Spain by the Royal Decree 504/2007 that passes the scale for assessment of the situation set by Act 39/2006. In this article, the scale value for each individual included in EDAD 2008 has been calculated according to this legislation. Differences between sex, ages and first appearance time have been considered and prediction of future evolution of dependency is obtained
    Keywords: Chain-ladder, Dependency, Disability, Forecasting, Functional data, Time warping model
    Date: 2013–02

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