Fall of Duty: Video Games vs. The Labor Market

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As technology has advanced, we have seen the effect it can have on labor demand, especially for lower-skilled workers. Erik Hurst, an economist at the University of Chicago, decided to look at how technological change influenced the other side of the market, or labor supply. Hurst, along with his co-authors Aguiar, Bils, and Charles released a working paper called .Leisure Luxuries and the Labor Supply of Young Men examining the impact of video games and other recreational computer activities on the willingness of young men to act as labor suppliers. A Theory of Individual Labor Supply One way which economists have looked at Continue reading Fall of Duty: Video Games vs. The Labor Market→

Economics of the Opioid Crisis

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Rationality in the opioid market It is no lie to say that the drug problem facing America right now is of pandemic proportions. With an estimated 2.1 million individuals facing opioid problems, drug use in the U.S. is far higher than other OECD nations to the point that drug overdose has overtaken traffic fatalities as the leading cause of accidental death. Driving this issue is the abuse of prescription and non-prescription opioids. The origins of the issue are up for debate, with many experts citing the the high propensity of heroin available in Vietnam during the war as a catalyst Continue reading Economics of the Opioid Crisis→

Turning the Tables on the Vinyl Revolution

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Recently, Sony Music announced that it would resume production of vinyl LPs, an operation the company halted in 1989, according to a report by CNN Money. The reason for that 1989 stop? Compact discs, which had taken over the market for audio recordings so completely as to render vinyl obsolete as far as Sony was concerned. Now, as digital music and streaming are rising in popularity and the death of CDs is being proclaimed (sensationally and, perhaps, prematurely) by sources including Time and The Atlantic, vinyl is coming back. Initially, it would appear that the production of new vinyl records Continue reading Turning the Tables on the Vinyl Revolution→

The Burning Question: How Much Do Wildfires Cost?

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If you live in the American West, you’re probably aware that it’s fire season. According to Chris Wilcox of the National Interagency Fire Center, there were about 123 large fires across the country, adding up to 2 million acres on fire as of September 10th. An ArcGIS Map shows the extent of the damage, with fire markers blanketing Idaho and tracing the Cascade Range. Coupled with the property damage and destruction caused by the flames, the smoke trapped by high pressure systems has been prompting air quality warnings for months. While the trapped smoke actually helps firefighters, it comes with health Continue reading The Burning Question: How Much Do Wildfires Cost?→

The Fallacy of Free-market Healthcare

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This last summer saw a contentious political climate nationwide over the ever-heated issue of healthcare and insurance. In California, the state saw overwhelming support for the Healthy California Act, which would have provided single-payer insurance to all in the state, including undocumented individuals. On a federal level, the GOP unsuccessfully attempted to repeal the Affordable Care Act, which would have seen over 20 million individuals lose coverage. These heated discussions on the future of healthcare in America represent an interesting paradox. On one hand, you have the largest state in the union showing near unanimous state senatorial support for a Continue reading The Fallacy of Free-market Healthcare→

Thesis Corner: Tesha Shalon

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A few days ago I had a talk with graduating senior and former Sound Economics writer, Tesha Shalon about her thesis on the impact of low cost carriers (LCCs) in the domestic airline market. In her thesis, she compares the profit and revenue of these airline companies to legacy carriers, who prospered during the airline regulatory era before the late 1970s. Tesha examines the effect of these LCCs on the profit and revenue of legacy carriers, while analyzing the extent to which LCCs’ profit compares to that of legacy carriers. Since deregulation in 1978, airline carriers have been forced to Continue reading Thesis Corner: Tesha Shalon→

Chinese Law May Show Trend Towards Tighter Regulation of Microtransactions

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As I touched on in a previous article, the market for digital items in video games is complex, lucrative, and rapidly changing. One particularly notable change has just come into effect. Last year, a Chinese law was introduced that would require video game publishers to release the item drop rates from in-game “loot boxes”, and as of May 1st this law is now in play. The “loot box”-based model of microtransactions has gained tremendous popularity among video game developers in the last handful of years, with games like DOTA 2, League of Legends, Overwatch, and others making extensive use of Continue reading Chinese Law May Show Trend Towards Tighter Regulation of Microtransactions→

Thesis Corner: Annie Vela

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Alex Shaw (AS): Annie, first, what was your thesis about? Annie Vela (AV):  My thesis was about US government changing allocation of funding from public prisons to public education. AS: How did you arrive at this topic? AV: When Kate (Stirling) asked us to start thinking of a topic over the summer, I started thinking about which of my economics classes I really enjoyed my Urban Economics class with Bruce Mann, which I loved. I’m very interested in how economic policy tangibly affects actual people. So I thought about topics that focused on people, and education is super important to Continue reading Thesis Corner: Annie Vela→

Thesis Corner: Predicting College Attendance

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So three weeks ago, I spoke with Ian Hughes about his thesis, titled: Identifying Socioeconomic Indicators of College Attendance with Classification Trees Much of Ian’s research centered around intergenerational income mobility and barriers to it. Some of the research showed that “low-income students are subject to less college preparation and lower test scores because of their financial situations”, which contributes to more difficulty in using education as a route out of poverty.  Much of the literature surrounding wealth, race, and parental education in connection with children’s college attendance is well established, so Ian included some other characteristics that have not Continue reading Thesis Corner: Predicting College Attendance→

Where is the Craft Beer Market Headed?

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The craft beer market has been heavily influenced by a change in preference for these less recognized beers. There has been a significant increase in demand for craft beer in general in the past five ten years. Independent and small beer producers accounted for 24.5 million barrels two years ago.  This production was a 13 percent rise in volume and led to a 16 percent increase in retail dollar value. Then in 2016, the sales of craft beer increased by 6.2% and saw a 10% dollar sales growth. After examining these statistics, it is evident that this market has seen Continue reading Where is the Craft Beer Market Headed?→