Both models suggest that there are economies of scale in the administration of
primary care. The fixed effects model estimates that the SCE is equal to 1.543 but
this is not significantly different from unity. The random effects model estimate
indicates a more modest SCE 1.209 which is statistically different from unity Ž .
because the random effects estimates are more precise. The random effects model
this suggests that there are economies of scale to be exploited at the mean
1994r1995 size of FHSA