Optimal allocation of public sector resources

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In this program of research I intend to examine a number of issues related to the efficient allocation of public sector resources.  The research covers two main problems and several variations of each: a budgeting problem, and a purchasing problem.    The budgeting problem is motivated by the following representative scenario: Suppose that an international aid organization wishes to allocate funds to multiple regions, but decision makers within each region will have final control over how the funds are spent.  How should funds be allocated among regions?  The purchasing problem is motivated by the following representative scenario: Suppose that a manager at a drug benefits plan is concerned about inappropriate usage of drugs listed on its formulary and is therefore considering imposing limited use conditions on all new drugs.  How are drug manufacturers likely to respond?  The research will use methods from management science, optimization, supply chain management, and the economics of contracts.  The program will pursue theoretical advances while focusing on applications in budgeting and public sector purchasing, as well as from other areas.