A non-trivial fraction of people cannot afford to buy pharmaceutical products at unregulated market prices. Therefore, the paper analyzes the public insurance of the pharmaceutical products in terms of price controls and the socially optimal third-degree price discrimination. It characterizes...

In health care, many aspects of the delivery of services are subject to regulation. Often the purpose of the regulated health care system is to encourage providers to keep costs down without skimping on quality. The purpose of this paper is to analyse the effect of price regulation and free...

New technological applications are usually expected to increase the health care costs. But they can also spawn cost savings in the long run, for example, when making time-consuming diagnostic methods more efficient and facilitating targeted therapy. This study analyses how the implementation of...

Aim of this paper is to estimate price-cost margin in the Finnish pharmaceutical industry. The estimation is based on the method developed by Hall (1988), who shows that, under constant returns to scale, the total factor productivity depends on the growth rate of output-capital ratio if the...

The aim of this paper is to compare the price-cost margins in the pharmaceutical industry in Finland and USA. We employ data on the Finnish and the US pharmaceutical industry. The estimation is theoretically based on a modification of the conventional growth models and its extensions under...

The paper asks whether the exercising of the NATO membership option is justified for Finland and Sweden in the light of their geopolitical state after Russia's attack on Ukraine. It was the Gallup democracy, which launched the political moves towards the membership. In both countries, the...

The Eurozone is stuck in an inefficient equilibrium with high public debt and no policy discipline. The no-bailout rule is not credible. This article proposes a radical two-stage solution for the restructuring of excessive public debt and to eliminate the incentives for undue public borrowing in...

Russia's attack on Ukraine has revealed the need to reassess Europe's security. Currently, the European Union is a politically fragmented and divided union of member states, economically underperforming, with a defense capability that is insufficient without the support of the USA. The European...

We find evidence in the OECD cross-country data to support the Knightian view that non-diversifiable economic risks shape equilibrium entrepreneurship in an occupational choice model. Differential social insurance of entrepreneurial and labor risk is found to be statistically significant and...

The paper introduces a model of enterprise formation in a unionized economy with labor protection and wage bargaining. Enterprise formation is subject to future market risk and is shaped by labor market institutions in the post-entry stage. The predictions of the model are tested in...