Competition and costs: evidence from competitive tendering in the Scottish National Health Service

Robin G. Milne, Robert E. Wright

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This paper estimates the impact of competitive tendering on cleaning costs in Scottish National Health Service hospitals. Unlike previous studies, which have relied on cross-sectional data, a five-year balanced panel of 176 hospitals is used to estimate a series of fixed effects regression models. These panel estimates suggest that previous studies have likely over-estimated the cost-savings associated with competitive tendering. The findings also suggest that the lower costs associated with competitive tendering have more to do with auction theory than with any intrinsic efficiency of the private sector.
LanguageEnglish
Pages1-23
Number of pages22
JournalScottish Journal of Political Economy
Volume51
Issue number1
DOIs
Publication statusPublished - 20 Jan 2004

Fingerprint

health service
costs
evidence
auction
savings
private sector
regression
efficiency
National Health Service
Competitive tendering
Costs
Cross-sectional data
Regression model
Auction theory
Cleaning
Intrinsic
Private sector
Fixed effects
Cost savings

Keywords

  • competition
  • economics
  • national health service
  • scotland
  • competitive tendering

Cite this

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Competition and costs: evidence from competitive tendering in the Scottish National Health Service. / Milne, Robin G.; Wright, Robert E.

In: Scottish Journal of Political Economy, Vol. 51, No. 1, 20.01.2004, p. 1-23.

Research output: Contribution to journalArticle

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