We analyze the dynamic interaction between imitation and myopic optimization in an environment of changing marginal payoffs. Focusing on finite irreducible environments, we unfold a trade-off between the degree of interaction and the size of environmental shocks. The optimizer outperforms the...

We examine an evolutionary model of equilibrium selection, where all individuals interact with each other, recurrently playing a strictly supermodular game. Individuals play (myopic) best responses to the current population profile, occa- sionally they pick an arbitrary strategy at random. To...

Incentive contracts must typically be based on performance measures that do not exactly match agents’ true contribution to principals’ objectives. Such misalignment may impose difficulties for effective incentive design. We analyze to what extent implicit dynamic incentives such as career...

We present a model of optimal contracting between a purchaser and a provider of health services when quality has two dimensions. We assume that one dimension of quality is veri?able (dimension 1) and one dimension is not verifiable (dimension 2). We show that the power of the incentive scheme...

The paper examines the heterogeneity with respect to the impact of a financial reform - Activity Based Financing (ABF) - on hospital efficiency in Norway. Measures of technical efficiency and of cost-efficiency are considered. The data set is from a contiguous ten-year panel of 47 hospitals...

Activity-based financing (ABF) was implemented in the Norwegian hospital sector from 1 July 1997. A fraction (30 to 50 per cent) of the block grant from the state to the county councils has been replaced by a matching grant depending upon the number and composition of hospital treatments. As a...

Fra 1. juli 1997 ble det innført Innsatsstyrt finansiering (ISF) av somatiske sykehus i Norge. Innsatsstyrt finansiering innebærer at deler av utgiftene til fylkeskommunens behandling av inneliggende pasienter refunderes av staten. Fylkene inngår ulike former for avtaler med sykehusene....

Innsatsstyrt finansiering (ISF) ble innført for somatiske sykehus i Norge fra 1.7.1997. ISF innebærer at deler av fylkeskommunenes utgifter til behandling av inneliggende pasienter refunderes av staten. Refusjonen avhenger av antall og sammensetning av behandlede pasienter, og refusjonen var i...

I forbindelse med behandlingen av statsbudsjettet for år 2000 ba Stortinget Regjeringen om å foreta en bred gjennomgang av sykehusenes økonomiske situasjon, og å legge frem et dokument for Stortinget i vårsesjonen før revidert nasjonalbudsjett. Til hjelp i dette arbeidet knyttet Sosial- og...