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Needless to say, Mr Black prefers theory.The hunt for losersCan efficient-market theory and evidence of inefficiency be reconciled?
Two decades of research suggests that the higher spending does not produce better results for patients but may be evidence of inefficiency.
The Economist attempted to answer the question more pragmatically back in 1992:Can efficient-market theory and evidence of inefficiency be reconciled?
The increase in MEDPERS cannot be considered an evidence of inefficiency.
Stephan Zuckerman explains that "geographic differences in Medicare spending are not necessarily evidence of inefficiency in health care," and that "29% of the differences can be attributed to health, but 33% remains unexplained".
Similar(55)
Though evidence of market inefficiency has soared in recent years, that does not mean markets have become less efficient.
The result is that just 68% of the European Union's working-age citizens are employed, compared with 77% of America's.But surely this is evidence of the inefficiency of Europe's welfare systems and the taxes needed to finance them?
For starters, we have to look no further for evidence of the inefficiency of our banking system than during our most recent recession.
It is argued that such evidence of substantial inefficiency would undermine Zambia's prospects of achieving its health goals.
Most studies find evidence for inefficiency but provide no theoretical explanations for differences in efficiency.
The international evidence of waste and inefficiency suggests that this conclusion holds not just for America but for most other developed economies.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com