A Wide‐​Ranging Book for Non‐​Economists and Economists

David R. Henderson (Regulation, March 2022) reviews Steven Rhoads, The Economist’s View of the World, revised 2021. The review applauds the chapters on:

1. Opportunity Cost
2. Marginalism
3. Incentives
4. Government vs. Free Markets and
5. Safety Information.

Stopping a Pandemic Deadlier Than Covid

The WSJ (March 2022) reports that "Rigorous studies have proved that tobacco has a negative price elasticity: For every 10% increase in price, consumption declines by about 4% and by about 8% for children and lower-income groups. About half of that decrease is from people quitting and the other half from people cutting down on the number of cigarettes they smoke."

The report implies that the price elasticity of demand, e, is -4/10 = -0.4 and for children e = -8/10 = -0.8. In both cases, demand is inelastic but not perfectly elastic: e > -1 (and |e| < 1).

Here are some questions.

1. What would happen to the profits earned by cigarette companies if they all raised their prices by 10%?
2. Why doesn't an individual firm raise its price by 10%?

How does your major affect your earnings?

The "Earnings over time" tab in the MyFloridaFuture tool contains the median earnings by major for graduates of the public colleges and universities in Florida. It reports three medians, one year after graduation, five years after graduation, and ten years after graduation. It reports medians by school and for all schools overall. A table with the values for all schools overall for selected majors follows below. Here are three observatiions.

1. Engineering is the most lucrative major. 
2. Economics majors do well compared to what some students may view as "close substitutes". 
3. The increase in income between year 1 and 10 is higher in economics than in the "close substitutes".

Writing Well

Three authors (March 2022) provide evidence that good writing increases the impact of the writing. Appendix B contains good advice.

Delivery economies of scale

Luke Froeb (Managerial Econ, March 2022) explains why Amazon and other firms that deliver directly to customers experience economies of scale.

The state is to be shunned as an inefficient instrument for achieving any given objective

Melvin Reder (Chicago Economics: Permanence and Change, March 1982) reports that the Chicago economists had a "generally adverse view of government intervention.

Pictured to the right are Milton Friedman (1912-2006), George Stigler (1911-1991), and Aaron Director (1901-2004) in 1947, at the first meeting of the Mont Pelerin Society. 

'It's not fun:' Soaring gas prices are walloping Americans but hitting lower-income hardest

USA Today (March 2020) reports that people are buying less gasoline and finding other ways to reduce expensses as gasoline prices "soar".

Oil Tops $130 a Barrel as Russian Attacks Escalate

The WSJ (March 2022) reports that "Oil buyers racing to replace Russia’ taboo crude are paying record premiums for barrels that can be delivered now rather than later, reflecting worries about adequate near-term fuel supplies and expectations that high prices will reduce consumption and encourage drilling"

A New Brand of Sticker Shock Hits the Car Market

The WSJ (Feb. 2022) reports that "With vehicles in short supply, prices are skyrocketing." 

Why is insulin so expensive?

"Why aren’t we seeing more companies making insulin? There are many reasons for this, but patent evergreening is a big one" (Cowen, Marginal Revolution, April 2019).

Bury the lede

 Good

Dear colleagues,

As members of the VCU community, we’re guided by our mission to serve humanity through education, innovation and world-class healthcare.

Together, we share a responsibility to foster learning and healing environments where all can succeed and thrive. Because our students and patients come first, everything we do as VCU faculty and staff must be with the highest level of integrity.

Our actions reflect our values and I’m grateful for your commitment to ethical behavior.

The VCU Code of Conduct is our guide to staying true to our mission and values. We’re pleased to offer you an Ethics and Compliance Basics Refresher course. The online course is now available and must be completed by April 8. You can access the course for employees here and the course for managers here.

You will be updated on the VCU Code of Conduct and the many tools and resources available to support you in your day-to-day life as a member of the VCU community.

Thank you for supporting our VCU culture of care, trust and integrity.

Better

Dear colleagues,

You must complete the Ethics and Compliance Basics Refresher course by April 8. You can access the online course for employees here and the course for managers here.  You will be updated on the VCU Code of Conduct and the many tools and resources available to support you in your day-to-day life as a member of the VCU community. The VCU Code of Conduct is our guide to staying true to our mission and values.

As members of the VCU community, we’re guided by our mission to serve humanity through education, innovation and world-class healthcare. Together, we share a responsibility to foster learning and healing environments where all can succeed and thrive. Because our students and patients come first, everything we do as VCU faculty and staff must be with the highest level of integrity. Our actions reflect our values and I’m grateful for your commitment to ethical behavior.

 Thank you for supporting our VCU culture of care, trust and integrity.

Bury the lede

Good

Dear VCU Community,

As the most recent surge of COVID-19 infection slows and public health guidance evolves with changing conditions, VCU is considering a transition back to voluntary masking. At this time, VCU continues to require masking indoors while on campus and at outdoor events with more than 50 people.

When making health and safety decisions, VCU’s Incident Coordination Team (ICT) and Public Health Response Team (PHRT) consider factors including positivity rates, hospitalization rates, and demand for quarantine/isolation housing. Fortunately, at this time these metrics are all trending downward.

When pandemic conditions improved last year, and positivity rates were below 10%, VCU eliminated its masking requirement. Likewise, if COVID-19 positivity and hospitalization rates continue to improve in the coming weeks, with positivity rates in Richmond sustained below 10%, VCU plans to once again transition to voluntary masking effective March 21. We selected March 21 to give our university community time to monitor trends over the next several weeks and transition after spring break travel. 

If VCU transitions to voluntary masking, masks will continue to be required in certain situations such as clinical settings, health system facilities and when using public transit. In response to feedback from VCU's COVID-19 Faculty and Staff Advisory Committee, and to ease this transition, VCU will also continue to require masks for in-person classes for the foreseeable future. Community members who wish to wear masks may continue to do so -- we must all continue to treat one another with kindness and respect.

On-campus vending machines will continue to be stocked with KN95 and cloth masks, which are available at no cost to students and employees. For more information about different types of masks, when to wear them, and how to clean them, visit this VCU Health resource.

Until VCU transitions to voluntary masking, it is important that we all continue to comply with the current requirements for indoor masking. For more information about this update and other public health measures, visit the One VCU Better Together FAQ.

We realize that our community members may be divided on the issue of mask requirements. As always, VCU leadership makes these decisions with the health and safety of our community members at the forefront and based on scientific data and guidance from experts in public health and safety. Low positivity rates, coupled with other mitigation efforts such as vaccines and boosters, present an opportunity to consider changes to COVID-19 health and safety protocols.

Your diligence has led us to this important milestone and we look forward to finishing the semester strong. Thank you.

Better

Dear VCU Community,

VCU plans to transition to voluntary masking effective March 21 if COVID-19 positivity and hospitalization rates continue to improve in the coming weeks, with positivity rates in Richmond sustained below 10%. We selected March 21 to give our university community time to monitor trends over the next several weeks and transition after spring break travel. When pandemic conditions improved last year, and positivity rates were below 10%, VCU eliminated its masking requirement in ???. For more information about this update and other public health measures, visit the One VCU Better Together FAQ.

 If VCU transitions to voluntary masking, masks will continue to be required in certain situations such as clinical settings, health system facilities and when using public transit. In response to feedback from VCU's COVID-19 Faculty and Staff Advisory Committee, and to ease this transition, VCU will also continue to require masks for in-person classes for the foreseeable future. Community members who wish to wear masks may continue to do so -- we must all continue to treat one another with kindness and respect.

When making health and safety decisions, VCU’s Incident Coordination Team (ICT) and Public Health Response Team (PHRT) consider factors including positivity rates, hospitalization rates, and demand for quarantine/isolation housing. Fortunately, at this time these metrics are all trending downward.

Until any transition to voluntary masking occurs, VCU continues to require masking indoors while on campus and at outdoor events with more than 50 people. On-campus vending machines will continue to be stocked with KN95 and cloth masks, which are available at no cost to students and employees. For more information about different types of masks, when to wear them, and how to clean them, visit this VCU Health resource. 

We realize that our community members may be divided on the issue of mask requirements. As always, VCU leadership makes these decisions with the health and safety of our community members at the forefront and based on scientific data and guidance from experts in public health and safety. Low positivity rates, coupled with other mitigation efforts such as vaccines and boosters, present an opportunity to consider changes to COVID-19 health and safety protocols.

Your diligence has led us to this important milestone and we look forward to finishing the semester strong. Thank you.