Health Care Investment: The Case of Multiple Sources of Risk

This paper analyses the effect of a bivariate risk on the optimal expenses in health care and gives conditions under which any change in the bivariate risk with respect to the $$\left( {s_{1} ,s_{2} } \right) -$$s1,s2-increasing concave order decreases the expenses in health care. Increasing risk increases the demand for health care for risk-averse and prudent individuals in the multivariate sense. Positive (negative) dependence increases (decreases) expenses in health care. Increasing the correlation produces the same results. Furthermore, the uncertainty surrounding the effectiveness of medical treatments amplifies the effect of any change in wealth and health risks. We also present some policy implications.

ACTIVE REDUNDANCY ALLOCATIONS IN SERIES SYSTEMS

We consider the problem of optimally allocating one/two active spares in series systems. Lifetimes of different configurations are compared with respect to the reversed failure rate order, the failure rate order, the increasing concave order, and the stochastic precedence order.

VARIABILITY FOR CARRIER-BORNE EPIDEMICS AND REED–FROST MODELS INCORPORATING UNCERTAINTIES AND DEPENDENCIES FROM SUSCEPTIBLES AND INFECTIVES

This article provides analytical results on which are the implications of the statistical dependencies among certain random parameters on the variability of the number of susceptibles of the carrier-borne epidemic model with heterogeneous populations and of the number of infectives under the Reed–Frost model with random infection rates. We consider dependencies among the random infection rates, among the random infectious times, and among random initial susceptibles of several carrier-borne epidemic models. We obtain conditions for the variability ordering between the number of susceptibles for carrier-borne epidemics under two different random environments, at any time-scale value. These results are extended to multivariate comparisons of the random vectors of populations in the strata. We also obtain conditions for the increasing concave order between the number of infectives in the Reed–Frost model under two different random environments, for any generation. Variability bounds are obtained for different epidemic models from modeling dependencies for a range of special cases that are useful for risk assessment of disease propagation.