Goepffarth, Dirk - In: Journal of Economics and Statistics (Jahrbuecher fuer … 227 (2007) 5+6, pp. 485-501
This article reviews the basic theoretical model of risk adjustment (Glazer/McGuire 2000) with a special focus on a coherent presentation of the main results. With adverse selection a regulator pursuing efficiency and solidarity objectives will need a risk adjustment scheme acting on a signal to...