In many health care markets, physicians can respond to changes in reimbursement schemes by changing the volume (volume response) and the composition of services provided (substitution response). We examine the relative importance of these two behavioral responses in the context of physician drug dispensing in Switzerland. We find that dispensing increases drug costs by 52% for general practitioners and 56% for specialists. This increase is mainly due to a volume increase. The substitution response is negative on average, but not significantly different from zero for large parts of the distribution. In addition, our results reveal substantial effect heterogeneity.

SUMMARYWidowhood and retirement change the economic environment of elderly households. While retirement changes income and expenditure patterns, widowhood fundamentally changes the structure of the household. Besides high non-monetary cost of losing the partner, resources are no longer shared and economies of scale arising from joint consumption are lost. This paper applies a collective household model to expenditure data on elderly households in Switzerland. The findings suggest that 44% of household resources are assigned to wives and both spouses save roughly 27% or, on average, 800 Swiss Francs on monthly expenditures relative to living apart. Estimates of indifference scales indicate that men suffer a financial loss after losing their wife, while widowed women do not. a I am grateful to two anonymous referees, Aline Biitikofcr, Michael Gerfin, Boris Kaiser, Kaspar Wuthrich, and seminar participants at the University of Bern for helpful suggestions and comments.

Internal colonization in Switzerland is often seen in connection with the battle for cultivation in the Second World War, but the history of internal colonization in Switzerland is more complex. The food crisis in the First World War formed the horizon of experience for various actors from industry, consumer protection, the urban population and agriculture to start considering practical strategies for managing agricultural production. In this way, traditional spaces, such as rural and urban areas and economic roles, such as food producer, consumer and trader, overlapped and were newly conceived to some extent: people started thinking about utopias and how a modern society could be designed to be harmonious and resistant to crisis. The aim of this article is to trace some of the key points in this process for the interwar years in neutral Switzerland. In the process, the focus must be on the context of people's mentalities in the past, although the relationships between the actors of internal colonization and the state also need to be considered. Internal colonization in Switzerland in the twentieth century can be understood as an open process. In principle, the project was driven by private actors, but in times of crisis, the project was claimed by the state as a possible tool for social and economic intervention. In addition, as a result of the planned dissolution of urban and rural spaces, it will be shown that modern societies in the interwar period were on an existential search to overcome the problems of the modern age. Internal colonization can therefore be seen as an attempt to find a third way a world characterized by an agrarian society and a modern industrial nation.

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