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Published online by Cambridge University Press: 21 November 2024
This chapter provides a brief overview of the stochastic frontier analysis (SFA) in the context of analyzing healthcare, with a focus on hospitals, where it has received widespread attention. The authors consider many of the popular extensions and generalizations of the classic SFA model in both cross-sectional and panel data. They also briefly discuss semiparametric and nonparametric generalizations, spatial frontiers, Bayesian SFA, and the endogeneity in SFA. They illustrate some of these methods for real data on public hospitals in Queensland, Australia, as well as provide practical guidance and references for their computational implementations via R.
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