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Resource productivity and returns to scale in school-based mouthrinsing programs
1Department of Behavioral Sciences and Community Health, University of Connecticut Health Center, Farmington 06032.
Community Dentistry and Oral Epidemiology
|April 1, 1990
Summary
Community dental programs face economic challenges. School-based mouthrinsing programs showed decreasing returns to scale and declining resource productivity, increasing average costs with size.
Area of Science:
- Dental Public Health
- Health Economics
Background:
- Community dental program viability depends on cost-effectiveness.
- Resource productivity and returns to scale significantly impact program economics.
Purpose of the Study:
- To determine returns to scale (increasing, decreasing, or constant) in school-based mouthrinsing programs.
- To assess the productivity of labor and capital in these programs.
Main Methods:
- A Cobb-Douglas model was used to analyze the production relationship between output (participants) and inputs (labor, capital).
- Data from 14 US school-based mouthrinsing programs over 2 years (28 observations) were pooled.
Main Results:
- The programs exhibited decreasing returns to scale (P < 0.01).
- Average and marginal productivities of labor and capital declined significantly (P < 0.001).
Conclusions:
- Larger program size, with equal wages and homogeneous labor, leads to increased average costs per participant.
- Further research into optimal program size and management's role in community dental economics is warranted.
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