Summary: The Inflation Reduction Act allows Medicare to negotiate the price of some drugs. What if this happened at a larger scale? The dismal answer would be “less incentive for pharma to innovate.” Yes, there is no such thing as a free lunch, but what about a cheaper lunch? The Indicator offers an optimistic view and our classroom exercise analyzes these policy ideas that may offer a solution to this “knotty” dilemma between prices and new drugs.
Professor Jennifer Doleac discusses how registering offenders in a DNA database make them much less likely to be convicted of another crime in coming years. Doleac also speaks to the importance of economists when studying crime and how policy makers should consider the tradeoff between privacy and effective policing measures.
Citation: Anker, Anne Sofie Tegner, Jennifer L. Doleac, and Rasmus Landersø. 2021. “The Effects of DNA Databases on the Deterrence and Detection of Offenders.” American Economic Journal: Applied Economics, 13 (4): 194-225.
Norway, the United Kingdom, California and many other places worldwide plan to ban the sale of gasoline cars within the next 10-15 years. Economist Stephen P. Holland discusses the implications of a simple ban, and instead encourages policies that will incentivize car manufactures to decrease production of gas cars without devastating the economy.
Citation: Holland, Stephen P., Erin T. Mansur, and Andrew J. Yates. 2021. “The Electric Vehicle Transition and the Economics of Banning Gasoline Vehicles.” American Economic Journal: Economic Policy, 13 (3): 316-44. DOI: 10.1257/pol.20200120
Have you ever thought about throwing all your belongings in a car and living on the open road? Bob Wells, a van nomad discusses how he turned his life on the road from a last hope into a chance to create hope and opportunity for others by documenting his nomadic life on YouTube. This episode discusses how the break from the societal “rat race” can end up being a much better economic choice for many.
Summary: When the recession hit, many workers within the United States not only lost their jobs, but they also had to cut back a significant amount of their hours. In this podcast, THE INDICATOR checks on three groups to see how they are doing now, part-time workers who want to be full-time, African-American unemployment, and people without college degrees.
Summary: What would a liberal economist say about the state of America’s economy today? THE INDICATOR discusses how the country’s economy may need some form of stimulus to boost further economic growth. However, would the benefits of the short run stimulus for the economy that we say we need, outweigh the cost of the long-term tax cuts?
Summary: Oil prices have been fluctuating over the years, but when there is a price increase, many people may experience increases in the price of gas, heating, or a flight ticket back home as well. With the volatility of oil prices, what does this mean for determining future prices of oil and will these prices ever stabilize?
Summary: THE INDICATOR discusses the Trump administration trade policy thus far regarding the tariffs on solar panels and washing machines that were implemented during Obama’s administration. How much of an impact do tariffs actually make on a country’s economy, if they do at all?
Summary: We all have experienced information aversion when it comes to information that provokes psychological pain. When the stock market crashes, do you continue to frequently check your portfolio, or ignore it completely since you anticipate future losses? If you chose to put your portfolio to the side, this exemplifies “the ostrich effect”. This term comes from not birds, but investors. Hidden Brain discusses how information aversion is associated with people avoiding information that is unpleasant. While we know that ignorance can be bliss, knowledge is power.
Summary: Cities across the U.S. have been making efforts to increase the minimum wage, which would impact restaurant workers. However, this move results to unexpected side effects due to the higher costs that restaurants will have to face, leading them to cut back on some services. This story discusses how the effects on increasing the minimum wage ties with the hygiene of restaurants and suggests potential steps that the restaurants can take to minimize their health violations.
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