Sound Economics

I gave blood in the campus blood drive yesterday. On my way to the blood mobile, I was wondering (in a slightly apprehensive state) why am I doing this? What is my real incentive for going through with such an inconvenient and uncomfortable hassle? That question inspired me to look into these two Freakonomics articles (link 1, link 2) that investigate exactly that question. I was interested to find that Chinese citizens are paid, about $12 a go, for their donations. Interestingly, there are conflicting findings about the effect of incentives on US blood donations. An older study actually indicated Continue reading “A Pint for a Pint”→

Most people remember Beanie Babies: the cute floppy animals stuffed with beans. There were hundreds of kinds at the height of their time: dogs, cats, bears, fish, squirrels, etc. They were a huge part of late 90’s culture, and many Americans were desperate to have them. American adults… not children. In 1998, Beanie Babies had sales of $1.4 billion. Stores that carried Beanie Babies were being mobbed by collectors and sold out in days. People were investing their childrens’ college funds into them, and dedicating their time to day trading stuffed animals. It was madness. Why were people pouring their life savings Continue reading When the Beanie Baby Bubble Burst→

Although you might be the only person you’re thinking about when you buy bubblebath online with two day delivery from Amazon, it turns out that the speedy and time-guaranteed delivery of your soap is part of a pervasive  trend that’s having huge effects on the global economy. Last week, I stumbled upon two stories that really show how important the just-in-time delivery paradigm has become. The first, from NPR’s Planet Money, the supply chain that perishable roses follow to get from halfway across the world, where it’s the growing season, to flower shops in anticipation of Valentine’s day. For just this one day, prices can spike to Continue reading Two Stories about Just-In-Time Delivery… from Last Week→

Seeing as I just presented my thesis findings at the UPS Economics Poster Session, I thought it would be relevant to post about an aspect of my thesis that I found myself explaining to a few people over the course of the evening. My thesis was centered on ethnicity, and how a person’s ethnicity impacts their earnings capacity. This measure of wealth is different than the more widely used measures, like their income in relation to the rest of the nation. Earnings capacity is essentially the potential earnings an individual could make through their lifetime if they leverage their personal capital Continue reading Earnings Capacity: A better indicator of poverty than income.→