Premium
Public Hospital Costs in Two Australian States
Author(s) -
Fahrer Jerome,
Fung Justin G.,
Harper Ian R.
Publication year - 2000
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.00146
Subject(s) - measure (data warehouse) , short run , public hospital , average cost , statistics , operations management , economics , agricultural economics , demographic economics , mathematics , medicine , computer science , macroeconomics , nursing , microeconomics , database
This study examines the long‐run and short‐run behaviour of public hospital average costs in two Australian States: Victoria and Queensland. Using adjusted weighted inlier‐equivalent separations as a measure of hospital output, and floor area as a measure of capacity, the study finds a hump‐ or ‘∩'‐shaped long‐run average cost curve at the 5 per cent significance level in both data sets. The study also finds a saucer‐ or ‘∪'‐shaped relationship between capacity utilisation and short‐run average cost at the 5 per cent level.