Past research on the allocation of federal resources to localities has failed to account for the interaction between federal and state governments. Here a sequential-move game of such interaction is developed, where state governments behave like political surrogates for the federal government...

This study covers “tapering scale” mechanism in hospital payments, i.e. mechanisms linking unit prices to the volume of services produced. This paper begins with an overview of hospital services and hospital payment methods in OECD countries, focusing more specifically on DRG-based payment....