This report evaluates alternative statistical models of the demand for medical care. The report discusses the estimation problems, the alternative models considered, and the choice of a final model. Chapter 2 briefly describes the design of the Health Insurance Study, which is the source of the data, and the sample. Chapter 3 provides a rationale for and description of each of the models considered, and Chap. 4 indicates the sensitivity of the empirical results to the estimation model. Chapter 5 compares the models empirically in terms of forecast bias and mean squared forecast error, using a split-sample technique. Chapter 6 summarizes the findings of this study.

In this book the authors explore the state of the art on efficiency measurement in health systems and international experts offer insights into the pitfalls and potential associated with various measurement techniques. The authors show that: - The core idea of efficiency is easy to understand in principle - maximizing valued outputs relative to inputs, but is often difficult to make operational in real-life situations - There have been numerous advances in data collection and availability, as well as innovative methodological approaches that give valuable insights into how efficiently health care is delivered - Our simple analytical framework can facilitate the development and interpretation of efficiency indicators.