Working Papers

The WNE Working Papers series has been published by the Faculty of Economic Sciences at the University of Warsaw since 2008.

The WNE Working Papers series provides a fast, open channel for disseminating research conducted at the Faculty of Economic Sciences, University of Warsaw. The papers hosted here are working versions (pre-prints) and may evolve as authors refine their analyses, incorporate feedback, or progress through formal peer-review. What you read is the current version released by the authors, timestamped and assigned DOI/ISSN identifiers to ensure precise citation and version tracking. Copyright remains with the authors, who may, at any time, upload a revised file or add a note directing readers to a later, peer-reviewed publication.

The Working Papers series accepts articles by research employees of the Faculty and publications from conferences organised at the Faculty of Economic Sciences at the University of Warsaw. Articles should be original research papers which have not been previously published, on the subject of economics.

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Number of Results 2

WP(6/2026)500. Cost-Effectiveness, Insurance Solvency, and Health Capital: A Joint Incompatibility Theorem and Dynamic Research Programme

Authors: Ryłow Jakub
This paper examines the mathematical architecture of health economics through four analytical traditions—Arrow’s welfare economics of medical care, Grossman’s health capital model, Garber’s cost-effectiveness analysis, and Zwe…

WP500. Cost-Effectiveness, Insurance Solvency, and Health Capital: A Joint Incompatibility Theorem and Dynamic Research Programme

This paper examines the mathematical architecture of health economics through four analytical traditions—Arrow’s welfare economics of medical care, Grossman’s health capital model, Garber’s cost-effectiveness analysis, and Zweifel’s actuarial insurance theory—and derives three original results. C1 (Joint Incompatibility Theorem): under empirically standard regularity conditions, no health system simultaneously satisfies the Garber–Phelps WTP-based cost-effectiveness criterion, Zweifel’s actuarial solvency condition under community rating, and the Pauly–Zweifel optimal coinsurance rule; the proof proceeds via three lemmas, each isolating a separate incompatibility. C2 (Dynamic Cost-Effectiveness Threshold): the cost-effectiveness threshold λ*(t) is derived as an endogenous co-state variable of a unified dynamic optimisation, and shown to equal the present value of future marginal health benefits discounted at the user cost of health capital ρ + δ(t). C3 (Demographic Suboptimality of Uniform Thresholds): as a corollary, uniform thresholds are dynamically inconsistent with any population whose age-specific depreciation rate is increasing, with the direction of the depreciation channel being theoretically determinate. Together, C1 converts a collection of separately noted tensions into a single structural result, while C2 and C3 convert that result into a constructive research programme for dynamic health economic evaluation.


DOI: https://doi.org/10.33138/2957-0506.2026.6.500
Ryłow Jakub
health economics cost-effectiveness threshold health capital actuarial solvency moral hazard dynamic cost-effectiveness QALY Grossman model incompatibility theorem endogenous threshold

WP(2/2020)308. Increasing the cost-effectiveness of water quality improvements through pollution abatement target-setting at different spatial scales

Authors: Czajkowski Mikołaj, Andersen Hans E., Blicher-Mathiasen Gite, Budziński Wiktor, Elofsson Katarina, Hagemejer Jan, Hasler Berit, Humborg Christoph, Smart James C. R., Smedberg Erik, Stålnacke Per, Thodsen Hans, Wąs Adam, Wilamowski Maciej, Żylicz Tomasz, Hanley Nick
In this paper, we investigate the potential gains in cost-effectiveness from changing the spatial scale at which nutrient reduction targets are set for the Baltic Sea, focusing on nutrient loadings associated with agriculture. Costs of achieving load…

WP308. Increasing the cost-effectiveness of water quality improvements through pollution abatement target-setting at different spatial scales

In this paper, we investigate the potential gains in cost-effectiveness from changing the spatial scale at which nutrient reduction targets are set for the Baltic Sea, focusing on nutrient loadings associated with agriculture. Costs of achieving loadings reductions are compared across five levels of spatial scale, namely the entire Baltic Sea; the marine basin level; the country level; the watershed level; and the grid square level. A novel highly disaggregated model, which represents decreases in agricultural profits, changes in root zone N concentrations and transport to the Baltic Sea is proposed, and is then used to estimate the gains in cost-effectiveness from changing the spatial scale of nutrient reduction targets. The model includes 14 Baltic Sea marine basins, 14 countries, 117 watersheds and 19,023 10-by-10 km grid squares. A range of policy options are identified which approach the cost-effective reductions in N loadings identified by the constrained optimization model. We argue that our results have important implications for both domestic and international policy design for achieving water quality improvements where non-point pollution is a key stressor of water quality.


Czajkowski Mikołaj, Andersen Hans E., Blicher-Mathiasen Gite, Budziński Wiktor, Elofsson Katarina, Hagemejer Jan, Hasler Berit, Humborg Christoph, Smart James C. R., Smedberg Erik, Stålnacke Per, Thodsen Hans, Wąs Adam, Wilamowski Maciej, Żylicz Tomasz, Hanley Nick
cost-effectiveness nutrient pollution agricultural run-off Baltic Sea eutrophication
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