Falling Short on Long-Term Care Efficiency Change? A Non-Parametric Approach
The European Commission’s 2015 aging report forecasts a substantial increase in public spending on Long-Term Care (LTC) for OECD countries by 2060, posing significant fiscal challenges. This study aims to assess the efficiency and productivity of the LTC sector from 2010 to 2019 and explore whether...
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| Format: | Article |
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MDPI AG
2024-12-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/12/12/341 |
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| author | Augusto Carlos Mercadier Irene Belmonte-Martín Lidia Ortiz |
| author_facet | Augusto Carlos Mercadier Irene Belmonte-Martín Lidia Ortiz |
| author_sort | Augusto Carlos Mercadier |
| collection | DOAJ |
| description | The European Commission’s 2015 aging report forecasts a substantial increase in public spending on Long-Term Care (LTC) for OECD countries by 2060, posing significant fiscal challenges. This study aims to assess the efficiency and productivity of the LTC sector from 2010 to 2019 and explore whether efficiency gains can alleviate these fiscal pressures. Using a non-parametric Data Envelopment Analysis (DEA) model, combined with Tobit regression, we estimate the efficiency of OECD countries and examine the role of decentralization in shaping performance outcomes. The findings reveal that, on average, countries operate at 94% efficiency, with modest productivity growth. However, technical inefficiencies persist, especially in unitary countries, while federal countries, though initially less efficient, show greater improvements over time. Despite these gains, the current efficiency levels are insufficient to counterbalance the projected increase in LTC demand. Policymakers should prioritize reforms that enhance efficiency through decentralization, promoting accountability and competition as mechanisms to sustain the LTC system in the face of demographic shifts. |
| format | Article |
| id | doaj-art-4f5211c16fc84f6b8a031da03ccd4541 |
| institution | Kabale University |
| issn | 2227-7099 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj-art-4f5211c16fc84f6b8a031da03ccd45412024-12-27T14:22:18ZengMDPI AGEconomies2227-70992024-12-01121234110.3390/economies12120341Falling Short on Long-Term Care Efficiency Change? A Non-Parametric ApproachAugusto Carlos Mercadier0Irene Belmonte-Martín1Lidia Ortiz2Doctoral School of the Miguel Hernández University of Elche (EDUMH), PhD Program in Economics (DEcIDE), Center of Operations Research (CIO), Miguel Hernandez University of Elche (UMH), 03202 Elche, SpainSocial Sciences and Humanities Department, Miguel Hernandez University of Elche (UMH), 03202 Elche, SpainCenter of Operations Research (CIO), Miguel Hernandez University of Elche (UMH), 03202 Elche, SpainThe European Commission’s 2015 aging report forecasts a substantial increase in public spending on Long-Term Care (LTC) for OECD countries by 2060, posing significant fiscal challenges. This study aims to assess the efficiency and productivity of the LTC sector from 2010 to 2019 and explore whether efficiency gains can alleviate these fiscal pressures. Using a non-parametric Data Envelopment Analysis (DEA) model, combined with Tobit regression, we estimate the efficiency of OECD countries and examine the role of decentralization in shaping performance outcomes. The findings reveal that, on average, countries operate at 94% efficiency, with modest productivity growth. However, technical inefficiencies persist, especially in unitary countries, while federal countries, though initially less efficient, show greater improvements over time. Despite these gains, the current efficiency levels are insufficient to counterbalance the projected increase in LTC demand. Policymakers should prioritize reforms that enhance efficiency through decentralization, promoting accountability and competition as mechanisms to sustain the LTC system in the face of demographic shifts.https://www.mdpi.com/2227-7099/12/12/341long-term careefficiencyproductivityMalmquist productivity indexOECD |
| spellingShingle | Augusto Carlos Mercadier Irene Belmonte-Martín Lidia Ortiz Falling Short on Long-Term Care Efficiency Change? A Non-Parametric Approach Economies long-term care efficiency productivity Malmquist productivity index OECD |
| title | Falling Short on Long-Term Care Efficiency Change? A Non-Parametric Approach |
| title_full | Falling Short on Long-Term Care Efficiency Change? A Non-Parametric Approach |
| title_fullStr | Falling Short on Long-Term Care Efficiency Change? A Non-Parametric Approach |
| title_full_unstemmed | Falling Short on Long-Term Care Efficiency Change? A Non-Parametric Approach |
| title_short | Falling Short on Long-Term Care Efficiency Change? A Non-Parametric Approach |
| title_sort | falling short on long term care efficiency change a non parametric approach |
| topic | long-term care efficiency productivity Malmquist productivity index OECD |
| url | https://www.mdpi.com/2227-7099/12/12/341 |
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