The use of prospective payment system in health care has mixed evidences as concerns its effectiveness. On the one side it avoid the problem of misreporting cost, but has the downside effect that, if hospitals might choose which patients to treat, competition might become unfair and the whole...

We examine how the U.S. Food and Drug Administration Amendments Act (FDAAA) of 2007, which requires additional disclosures regarding clinical trial results, impacts information asymmetry between the disclosing pharmaceutical firm and capital market participants, the general public, academics,...