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Università della Svizzera italiana

Economies of scale and efficiency measurement in Switzerland's nursing homes

Farsi, Mehdi ; Filippini, Massimo ; Lunati, Diego

In: Swiss journal of economics and statistics, 2008, vol. 144, no. 3, p. 359-378

This paper examines the cost efficiency in the nursing home industry, an issue of concern to Swiss policy makers because of the explosive growth of national expenditure on elderly care and the aging of the population. A stochastic cost frontier model with a translog function has been applied to a balanced panel data of 1780 observations from 356 nursing homes operating over five years (1998-2002)...