capital is not transferrable, health risk—unlike medical spending risk—cannot be pooled through traditional insurance. Instead …, medical innovation is the main method of achieving smoothing in health across disease states. We explore the welfare … health risk, as regulations lower health risks of products ex post but raise risk ex ante by discouraging medical innovation …

We review and extend the economic analysis of risk and uncertainty as it relates to behavior mitigating health shocks … mechanism for a population's health. By enabling treatment of a harmful disease, it completes the previously incomplete market … for risk-sharing in health by pooling the health care spending risk. In a sense, medical innovation involves a current …

We review and extend the economic analysis of risk and uncertainty as it relates to behavior mitigating health shocks … mechanism for a population's health. By enabling treatment of a harmful disease, it completes the previously incomplete market … for risk-sharing in health by pooling the health care spending risk. In a sense, medical innovation involves a current …