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Virginia Tech

Hospital Cost Functions and Quality

Abstract

dc:description.abstract

This study examines the significance of quality when included in the specification of a hospital cost function. Also, this research estimates a value for scale economies in order to determine if the average hospital experiences increasing returns to scale in the production of hospital care, verifying such findings in previous econometric studies. Furthermore, two functional forms are compared: the Cobb-Douglas and the translog. The results of this study demonstrate that quality has a significant impact on costs. This relationship is positive meaning increasing quality will also increase the cost of producing hospital care. The results for scale economies demonstrate that the average hospital experiences increasing returns to scale in the production of hospital care, which is consistent with previous research. Lastly, based on an F-test, this study is able to accept the translog as the appropriate functional form.

Degree

thesis:*
Name thesis:degree_name
Master of Arts
Level thesis:degree_level
masters
Discipline thesis:degree_discipline
Economics
Department dc:contributor.department
Economics
Grantor dc:publisher
Virginia Tech
Year dc:date.issued
1999

Author and committee

dc:creator, dc:contributor.*
Author dc:creator
  • Evans, Michael John
Committee members dc:contributor.committeemember
  • Lutton, Thomas J.
  • Waud, Roger N.
  • Wentzler, Nancy A.
  • Reid, Brian K.

Subjects

dc:subject × 3

Rights

dc:rights
Statement dc:rights
  • In Copyright

Identifiers

dc:identifier.*
Dc Identifier Other
etd-052799-192255
OAI identifier oai:identifier
oai:vtechworks.lib.vt.edu:10919/33297

Chain of custody

source
Harvested from
Virginia Tech
Base URL
vtechworks.lib.vt.edu/oai/request
Last updated
2026-07-22
Source record
OAI-PMH GetRecord
citation

Evans, Michael John. Hospital Cost Functions and Quality. masters thesis, Virginia Tech, 1999. http://hdl.handle.net/10919/33297