We study the role of health care within a continuous time economy of overlapping generations subject to endogenous mortality. The economy consists of two sectors: final goods production and a health care sector, selling medical services to individuals. Individuals demand health care with a view...

Equity in health has to be distinguished from equity in access to health care, or equity in the distribution of health care resources. We take as a working definition of health for our purposes the number of quality adjusted life years that a person may expect to enjoy over his or her lifetime....

We consider physicians with fixed capacity levels. If a physician's capacity exceeds demand, she may have an incentive to overtreat, i.e., she may provide unnecessary treatments to use up idle capacity. By contrast, with excess demand she may undertreat, i.e., she may not provide necessary...

This paper analyzes the consequences of parallel trade on health care systems in a two-country model with a vertical distributor relationship. In particular, two cost-sharing systems - coinsurance and indemnity insurance - are compared with respect to changes in copayments and public health...

This paper addresses the impact of payment systems on the rate of technology adoption. We present a model where technological shift is driven by demand uncertainty, increased patients’ benefit, financial variables, and the reimbursement system to providers. Two payment systems are studied:...

Medicare Accountable Care Organizations (ACOs) represent the nation’s largest initiative of Medicare alternative payment models toward value and health outcomes. The Centers for Medicare & Medicaid Services (CMS) have tested various ACO models with differential risk structures, and have issued...

The discussion about health care systems focuses on the dynamics of expenditures and on the weak growth of revenues. In this discussion, it is widely overseen that medical expenditures and the supply of medical services depend crucially on the compensation of physician services. The paper...

The years 2003-2004 marked the tenth anniversary of the rapid rise and demise of the Clinton administration's health reform efforts. Health reform may again be a political issue in the 2008 congressional and presidential elections. However, analysts still disagree over why large-scale health...

The theory of the second best implies that policymakers should address all relevant issues in a comprehensive manner to improve social welfare. Since most components in the economy are interconnected, a policy focusing narrowly on particular aspects of a broad issue often produces serious side...