Appendix A.2.
Coefficients of Translog Production Function Estimate with Factor A and Factor B
| Without Hospital Fixed Effects | With Hospital Fixed Effects | |
|---|---|---|
| ln(DRG) | 0.319 (0.018) |
0.227 (0.017) |
| ln(DRG)2 | −0.106 (0.007) |
−0.063 (0.006) |
| Factor A | 0.028 (0.004) |
|
| Factor A2 | 0.0003 (0.008) |
|
| Factor A * ln(DRG) | −0.010 (0.002) |
−0.004 (1.46) |
| Factor B | −0.021 (0.005) |
|
| Factor B2 | −0.004 (0.001) |
|
| Factor B * ln(DRG) | 0.017 (0.004) |
0.021 (0.003) |
| Factor A * Factor B | 0.004 (0.002) |
|
| R2 | 0.10 | 0.27 |
Notes: Each column presents regression results from a generalized translog production function (year effects included but not reported), clustered at the hospital level. The dependent variable is one-year risk-adjusted survival. Column 1 presents coefficients without hospital-level fixed effects; Column 2 includes hospital-level fixed effects. Note that many of the Factor A and Factor B coefficients drop out of Column 2 because of hospital fixed effects. For sample description and variable definitions see the notes to table 6.