Chen B. Provider Strategic Behavior in the Global Budget System. Working Paper. 2010.Abstract
Given the increasing pressure of health expenditure growth in recent decades, global budget payment has become an important policy option to contain health care cost. This paper presents a theoretical analysis of the incentive structure of the global budget system as well as the strategic behavioral response of the providers. I argue that global budget is a type of common-pool resources (CPR) and therefore presents the providers a social dilemma, in which the individual and group interests conflict. Under a bounded rationality framework, the analysis shows that as the payment system shifts from fee-for-service to global budget, the providers would first engage in a non-cooperative competition where the providers pay more attention to services with higher price-cost ratios. The resulting volume race would lead to a vicious circle of working harder but declining profits. However, in the awareness of the need for collective action, the providers could, with varied levels of success, overcome “the tragedy of the commons” by engaging in cooperative competition, which poses a different set of financial incentives than the earlier phase and could result in structural changes of the health care market in the long-run. Implications for empirical testing are then discussed.
Chen B, Fan VY, Manne J. Public Financing for Health in Developing Countries. Lancet. 2010;(Forthcoming).
Chen B, Fan VY. Retrospective Evaluation of UNICEF's ACSD Programme. Lancet. 2010;375 (9725) :1521-2.
Chen B. Impact of Immigration on Tax Rate: The Political Economy State Income Tax in the U.S. Working Paper. 2009.Abstract
The impact of immigration on redistribution policies has been a major topic of interest in political economics. However, in the previous literature, assuming migration level as exogenous, both theoretical prediction and empirical investigations have yield mixed results. This study explicitly takes into account the potential reverse causality between immigration level and redistribution and evaluates the impact of immigration on state income tax rate, using a constructed balanced panel dataset of 50 states in the U.S. from 1994 to 2005. Two-stage lease squares (2SLS) method coupled with fixed effect regression is conducted. The results show that there is a time lag in the median voters’ response to immigration: while the immigration level in the preceding year is negatively associated with the tax rate, an increase in the current share of immigrant in the population in contrast leads to a concomitant increase in the tax burden.
Chen B. Disastrous Impact of Imprudent Massive use of Antivirals. United Daily News. 2009.
Chen B, Mahal A. Reporting Heterogeneity in Self-reported Health: The Case of Elderly in India, in International Health Economics Association Congress. Beijing, China ; 2009.
Chen B, Chang YM. CPR with Assisted Extracorporeal Life Support. Lancet. 2008;372 (9653) :1970.
Chen B. A Comparative Analysis of Disease Surveillance Systems in U.S. and China. Population and International Health. 2006;MPH.