Should health care provision be public, private, or both ? We look at this question in a setting where people differ in their earnings capacity and express an inelastic demand for health care.W e assume that illness reduces a person's health status when not receiving immediate treatment....

A classic argument in the theory of crime is that optimal enforcement policy should involve maximal sanctions and no crime. Yet this is rarely observed in the real world. We argue that one reason for this has to do with the time inconsistency of such a policy. If sanctions are only applied after...