There is increasing debate on whether official-sector stress tests are fit for purpose and deliver what they are designed for. In the EU, this discussion focuses on the costs and benefits of such a large-scale bottom-up exercise and on the possible options to improve its usefulness for banks,...

We provide a micro-based rationale for macroprudential capital regulation by developing a model in which bankers can privately undertake a costly effort and reduce the probability of adverse shocks to their asset holdings that force liquidation (deterioration risk). Low fundamental risk of...

There is increasing debate on whether official-sector stress tests are fit for purpose and deliver what they are designed for. In the EU, this discussion focuses on the costs and benefits of such a large-scale bottom-up exercise and on the possible options to improve its usefulness for banks,...

An innovative and expensive performance-related pay scheme was introduced for general practices across the UK in 2004. It was not piloted and baseline performance data were not collected prior to its introduction. We estimate the impact of this Quality and Outcomes Framework (QOF) by analysing...

We propose a dynamic auction mechanism for efficiently allocating multiple heterogeneous indivisible items. These goods can be split into two distinct sets so that items in each of the two sets are substitutes but are complementary to items in the other. The seller has a reserve value for each...

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 contractible (dimension 1) and one dimension is not contractible (dimension 2). We show that the optimal incentive scheme...