The Unexpected Consequences of More Efficient Lighting

Like 19th century English coal, more efficient and cheap LED lights can mean people and businesses use it more because of the lower opportunity cost.

The Expensive Side of (Venezuela’s) Cheap Gas

Subsidies and taxes determine the price of gasoline. Whether gasoline is cheap or expensive, its price affects people’s incentives and national tradeoffs.

What Makes a City a Good Place to Live?

Good for the environment and innovation and a concentrated labor pool, top cities like Austin, Portland and Honolulu create positive externalities.

Why Would a Firm Not Want 50 Employees?

Economist Casey Mulligan says that the Affordable Care Act will impact labor markets by diminishing productively through perverse incentives.

How Much Do You Care About Your Independent Book Store?

The price floor in France’s Anti-Amazon Law protects independent booksellers and their cultural contribution but diminishes efficiency and raises prices.

Weekly Roundup: From Airline Seats to Earthquakes

Our weekly roundup includes everyday economics that relate to opportunity cost, corporate taxation, GDP, monopolistic competition & negative externalities.

The Costs of Being Prepared for a Natural Disaster

Whereas natural disaster preparation can save lives, it might have too high an opportunity cost to make sense or be a ShakeAlert that has been proven.

Do You Want a Healthcare Nudge?

Primarily for fiscal reasons, in Japan, most 40-74 year olds get their waist size checked each year. A part of the required annual physical exams from local government or employers, waist size is monitored because an obese population can be expensive.…

Chart of the Week: The Rare Disease Spending Dilemma

Our Sunday Chart of the Week Since our chart looks at Medicaid spending on rare diseases, we better start with Medicaid. It is complicated. Yes, Medicaid targets the poor and has federal and state funding. However, varying from state to…

What Would David Ricardo Say About Your Sneakers?

While the uniforms, boots and other items worn by the military are supposed to be 100% “Made in the USA,” exceptions are okay if we cannot make what they need. Athletic shoes became one of those exceptions when the Defense…