Abstract
The purpose of this paper is to measure technical efficiency in Japanese public hospitals and to compare the results obtained from the two models of estimating multi-output distance functions. Namely, data envelopment analysis (DEA) and corrected ordinary least squares (COLS). Output-orientated and input-orientated distance functions are estimated and compared. The mean efficiencies obtained from output-orientated DEA, input-orientated DEA, output-orientated model of COLS, and input-orientated model of COLS are 60.2%,72.1%,88.4%, and 88.9%respectively. The results indicate a strong degree of correlation between the outputand input-orientated results for each of the two estimation methods. The degree of correlation observed between the results obtained using alternative estimation methods is weaker than the degree of correlation between the output- and input-orientated results for each of the two estimation mothods.
