The Efficiency of Health Systems in OECD Countries with Novel DEA Methodology

The main purpose of this paper is to determine the relative scores of the efficiency of health systems in the OECD countries. The data used in the analysis of this paper has been obtained from the official OECD database and we have been analyzing the data between 2005 and 2015. We use the health indicators to point out the performance of healthcare systems of individual OECD countries. The efficiency results are obtained by Data Envelopment Analysis (DEA). DEA is an analysis of the efficiency of production units, which give us the efficiency score of the specified individual units. DEA is also used for the examination of the efficiency in the services sector. In this way, we can point to the level of efficiency of the health systems of the individual OECD countries. Traditional DEA methods are limited in some cases with regard to the nature of the selected variables. Emrouznejad and Amin (2009) point to the limitations of DEA models using the indicators expressed as ratio variables. In our paper, we will use the novel method for assessing efficiency - Dynamic Network Data Envelopment Analysis (DNDEA), applied by Ozcan and Khushalani (2016).