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Computational and Mathematical Methods in Medicine
Volume 2016, Article ID 2801081, 5 pages
Research Article

A Bayesian Approach for Evaluation of Determinants of Health System Efficiency Using Stochastic Frontier Analysis and Beta Regression

Department of Statistics, Ondokuz Mayıs University, 55139 Samsun, Turkey

Received 25 January 2016; Accepted 15 March 2016

Academic Editor: Chuangyin Dang

Copyright © 2016 Talat Şenel and Mehmet Ali Cengiz. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


In today’s world, Public expenditures on health are one of the most important issues for governments. These increased expenditures are putting pressure on public budgets. Therefore, health policy makers have focused on the performance of their health systems and many countries have introduced reforms to improve the performance of their health systems. This study investigates the most important determinants of healthcare efficiency for OECD countries using second stage approach for Bayesian Stochastic Frontier Analysis (BSFA). There are two steps in this study. First we measure 29 OECD countries’ healthcare efficiency by BSFA using the data from the OECD Health Database. At second stage, we expose the multiple relationships between the healthcare efficiency and characteristics of healthcare systems across OECD countries using Bayesian beta regression.