Using a simple three-period model in which a manager can gather information before making an investment decision, this paper studies incentive effects of various executive stock options. In particular, we show how the exercise price of executive stock options is related to base salary, the size...

Using a simple three-period model in which a manager can gather information before making an investment decision, this paper studies incentive effects of various executive stock options. In particular, we show how the exercise price of executive stock options is related to base salary, the size...

The health care industry in some countries displays a gated structure. Rather than approaching a specialist directly, a patient will first seek a referral from a general practitioner. We provide one possible explanation for such an industry structure. If the outcome of treatment depends on the...

We use the 2004-'05 wave of the Australian National Health Survey to estimate the impact of private hospital insurance on the propensity for hospitalization as a private patient. We employ instrumental-variable methods to account for the endogeneity of supplementary private hospital insurance...