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Healthcare expenditure growth is affected by important unobserved common shocks such as technological innovation, changes in sociological factors, shifts in preferences, and the epidemiology of diseases. While common factors impact in principle all countries, their effect is likely to differ across countries. To allow for unobserved heterogeneity in the effects of common shocks, we estimate a panel...
This paper demonstrates how Bayesian hierarchical modelling can be used to evaluate the performance of hospitals. We estimate a three‐level random intercept probit model to attribute unexplained variation in hospital‐acquired complications to hospital effects, hospital‐specialty effects and remaining random variations, controlling for observable patient complexities. The combined information provided...
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