In this article, we analyse the optimal investment decision in a new health care technology of a representative hospital that maximises its surplus in an uncertain environment. The new technology allows the hospital to increase the quality level of the care provided, but the investment is...

In this article we propose a model that explains why devolution in the real world may be implemented even when efficiency would call for a centralised solution. In a context where Central Government delegates to lower tiers the provision of merit and impure public goods, fiscal federalism has...

The choice of financing public expenditure with taxes or debt (or both) have been widely investigated by the literature, without finding an ultimate solution. In this article, we take a different point of view and compute the dynamics of the optimal debt/GDP ratio to study under which conditions...

The paper uses a real option approach to investigate the impact of performance-based risk-sharing agreements for the reimbursement of new drugs in comparison with standard cost-effectiveness thresholds. The results show that the exact definition of the risk-sharing agreement is key in...

In this note we explore the welfare properties the cost effectiveness criterion as an instrument to improve the appropriateness of health care. We show that such instrument is optimal only under specific assumptions relating to the shape of the welfare function and the utility of health care