firms' incentives to selectively enroll low-cost individuals, governments frequently "risk-adjust" payments to firms based … on enrollees' characteristics. We model how risk adjustment affects selection and differential payments---the government … that firms reduce selection along dimensions included in the risk-adjustment formula, while increasing selection along …

This paper constructs a tractable general equilibrium model of search with risk-aversion. An increase in risk … hazard: insured workers seek high wage jobs with high unemployment risk. An economy with risk-neutral workers achieves … maximal output without any UI. In contrast, in an economy with risk-averse workers, a positive level of UI maximizes output …

potential to increase efficiency and improve resource allocation, contract renegotiations have been pervasive.We show that …

spending. At the same time, PPPs can lead to important efficiency gains, especially for transportation infrastructure. These … infrastructure. The governance can be improved by the use of contracts with appropriate risk allocation and by avoiding opportunistic …

efficiency grounds, the contract that optimally balances demand risk, user-fee distortions and the opportunity cost of public … with realistic informational requirements. Finally, the allocation of risk under the optimal contract suggests that PPPs …