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Bundled payments for care are an efficient mechanism to align payer, provider, and patient incentives in the provision of health care services for an episode of care. In this chapter, we use agency theory to examine the evolution of bundled payment programs in private and public payer arrangements, and postulate future directions for bundled payment development as a key component in the provision and payment of health care services.

Deficits in fiscal and current account balances in a large number of countries reveal interesting implications of the causal relationship between internal and external imbalances. Empirical evidence about the occurrence of so-called twin deficits or twin surpluses provides crucial information about the validity of an intertemporal approach. However, most recent dynamic cyclical changes during the crisis period revealed many questions about the direct interconnection between macroeconomic performance and twin imbalances. In the paper we observe substantial features of twin imbalances in European transition economies. Event study (identification of large fiscal and current account changes and their parallel occurrence) and vector auto-regression methods will be employed to examine key aspects of twin imbalances. Our results suggest that current account deteriorations were predominately associated with negative public investment and savings balances (fiscal deficits), while current account improvements were predominately associated with positive private investment and savings balances, confirming empirical evidence about twin deficits in European transition economies.

Relationships are socially constructed by companies in interaction. This study explains the dynamic character of business-to-business relationships with the aid of rules theory, a theory borrowed from the communications field. Two forms of rules are identified: constitutive rules guide the interpretation of the other's acts, and regulative rules guide the appropriate response to the interpreted act. Rules theory asserts that companies act as if applying these rules. Relationships provide not only the context in which the parties’ acts are performed but are also the result of such acts. Thus, relationships are potentially reshaped each time one party performs an act and the other party gives meaning to that act and reacts.

Many jurisdictions fine illegal cartels using penalty guidelines that presume an arbitrary 10% overcharge. This article surveys more than 700 published economic studies and judicial decisions that contain 2,041 quantitative estimates of overcharges of hard-core cartels. The primary findings are: (1) the median average long-run overcharge for all types of cartels over all time periods is 23.0%; (2) the mean average is at least 49%; (3) overcharges reached their zenith in 1891–1945 and have trended downward ever since; (4) 6% of the cartel episodes are zero; (5) median overcharges of international-membership cartels are 38% higher than those of domestic cartels; (6) convicted cartels are on average 19% more effective at raising prices as unpunished cartels; (7) bid-rigging conduct displays 25% lower markups than price-fixing cartels; (8) contemporary cartels targeted by class actions have higher overcharges; and (9) when cartels operate at peak effectiveness, price changes are 60–80% higher than the whole episode. Historical penalty guidelines aimed at optimally deterring cartels are likely to be too low.

This chapter analyzes detailed 24-hour diary data from the United States to provide evidence on the relationship between workers' effort and well-being while at work. In doing so, we first measure workers' effort in terms of the amount of on-the-job leisure, number of on-the-job leisure episodes, and the time working until consuming on-the-job leisure. Second, we link these three measures of worker effort to data on instantaneous well-being while at work. We find that the less time devoted to on-the-job leisure and the number of on-the-job leisure episodes, and the more time workers spend working until on-the-job-leisure, the higher the levels of stress during their work tasks. In analyzing workers' effort and stress during market work activities, we contribute to the scant literature on the determinants of worker happiness while at work, positing the consumption and the frequency of on-the-job leisure as affective factors.

In this chapter, we seek to resolve the long-running controversy as to whether moods foster or inhibit creativity. We base our arguments on a new theory, which we refer to as “creativity-as-mood-regulation,” where employees experiencing moods are envisaged to engage in creative behavior in the hope of regulating their moods. We further suggest that employees with different goal orientations will have different likelihoods of choosing creative activities to regulate their moods. Finally, we identify the specific goal-orientation conditions under which positive and negative moods may facilitate or depress creativity, and develop and discuss six related propositions.