This paper offers an integrated view of the relationships between health spending, medical innovation, health status, growth and welfare. Health spending triggers technological progress, which is a potential source of better outcomes in terms of longevity and quality of life, a direct source of...

In this paper we present a theory of health investment when there are multiple causes of death. Since there are several risks competing for one's life, the health investments in avoiding different causes of death are not independent in general. We analyze the optimal investment rules and the...

In this paper we present a theory of health investment when there are multiple causes of death. Since there are several risks "competing" for one's life, the health investments in avoiding different causes of death are not independent in general. We analyze the optimal investment rules and the...

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:...

This paper compares the cost and quality incentive effects of cost reimbursement and prospective payment systems in the health industry when providers are altruistic. Providers' behavioral rule is governed by a desire to maximize a weighted sum of profit and consumers' health benefit. When...

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...