Risk adjustment is vital in health policy design. Risk adjustment defines the annual capitation payments to health insurers and is a key determinant of insolvency risk for health insurers. In this study we compare the current risk adjustment formula used by Colombia's Ministry of Health and...

We introduce new risk groups to a standard capitation formula and evaluate risk selection incentives of insurers. The study uses a unique data set of almost 24 million affiliates to Government's mandatory health insurance system. This data set is very rich in the sense of reporting all claims...

Deforestation is a large contributor to climate change. Controlling deforestation is difficult, especially because there are 484 million of hectares of forest that are community owned. In principle this arrangement could lead to a tragedy of the "commons", however there could be economies of...