Sound Economics – Page 82 – Everyday economics from the University of Puget Sound

Economics Undergraduate Research Opportunity!

Posted on April 3, 2014 by Andrew Monaco — No Comments ↓

The Department of Economics at UPS requests proposals for the Kriens Fund for Economics Student Research Awards for 2013-14. Successful proposals will receive funding to engage in a proposed project with an identified project mentor from the economics faculty. The award supports basic research that enhances understanding of a well-defined economics research question. While not a requirement for funding, award allocation includes a preference for funding projects seeking solutions and outcomes that promote land management and conservation. The application deadline for funds this year is April 25, 2014. For additional instructions, including an application for Kriens funds, please click here!

The Real Job Creators

Posted on April 3, 2014 by Tom Merritt — No Comments ↓

Job Creators. It’s a term that’s been thrown around a lot in the media in recent years. It’s most commonly used as a term of endearment for wealthy business owners, usually in an attempt to defend them from new taxes or regulations that would hurt their bottom line, and by the media’s logic, hurt the labor market. In this view, the wealthy are like benevolent dictators, creating jobs only when taxes and regulations are to their liking. But this simply isn’t the case. As venture capitalist Nick Hanauer points out, businesses do not just generate jobs out of the goodness Continue reading The Real Job Creators→

A Beginner’s Guide to Inflation

Posted on April 2, 2014 by Collin Hoover — No Comments ↓

Inflation. It’s one of those economic terms that gets thrown around a lot, but perhaps not explained as much as it should be. I’d like to offer an accessible and brief guide to understanding inflation, mostly for intro economics students but also for anyone that may find themselves in a situation where someone tries to tell you that inflation is “bad” or “good”. Inflation is a necessary part of our current and modern economy. It is neither good nor bad, it simply exists, and there are benefits and consequences to relatively higher or lower inflation. The debate on inflation should always Continue reading A Beginner’s Guide to Inflation→

Risk and Health

Posted on April 1, 2014 by Andrew Monaco — No Comments ↓

HT to Barry Ritholtz for sharing this video on how we (often fail to) understand risk in the context of health care policy. It includes a great example of why requiring child seats on planes is inefficient, and what diseases are real killers in the United States. (Approx. 6 min.)

Diversity of Economic Indicators

Posted on April 1, 2014 by Matthew Moreno — No Comments ↓

Economists—as well as politicians, traders, and the media—use indicators to assess and describe the economy. They’re like measurements your doctor might take to evaluate your health: heart rate, blood pressure, reflexes, etc.. Economic indicators range from straightforward, official measurements of intuitively “economic” statistics (such as the BLS’s Consumer Price Index) to unofficial, indirect methods of gauging economic activity. In our healthcare analogy, indirect indicators might be like your doctor trying to determine your overall health by investigating how well-used your pillow is (to guess the quality of your sleep). Think that sounds clever? Check out these economic indicators: + using “Craigslist Continue reading Diversity of Economic Indicators→

Food Aid or Food Assistance

Posted on March 31, 2014 by Jared Soares — 3 Comments ↓

The United Nations formed the World Food Program (WFP) in 1961 to allocate foreign food aid to those suffering from famine or other disasters (man-made or natural). The program originally provided aid by sending staple foods directly to the region in need. This use of aid quickly undercuts local markets. And while it does feed people, many are still left malnourished.There is a need to take a closer look. Flooding a region with free commodities can drive local producers out of business and cause more long term damage than short term good. There is not much use in feeding a Continue reading Food Aid or Food Assistance→

The NBA Losing Problem

Posted on March 28, 2014 by Ricky Howard — 2 Comments ↓

If you have been paying attention to the NBA recently, you may notice a few teams that are aspiring to lose as many games as they can. The Philadelphia 76ers have just lost a franchise record 26th game in a row, and it is quite possible that they will lose the rest of their games this season. This would appear to be a disappointment for the franchise, but it is all part if a greater plan. This losing streak, and entire season, was orchestrated by the organization. Before the February 20th trade deadline, the team traded their two best and Continue reading The NBA Losing Problem→

Thesis Corner: Is Hosting the Olympics Really Worth the Gold (Standard)?

Posted on March 28, 2014 by Morgan Taylor — No Comments ↓

Throwing a giant party is a daunting task. It requires a lot of pre-planning, a lot of money for food and entertainment, and a lot of time cleaning up after everyone has gone home. Now imagine hosting the world’s biggest party – the Olympics. The intense competition between countries as they fight to win the bid for host suggests that the benefits of hosting the Olympics outweigh the costs. But is hosting the Olympics really all it’s cracked-up to be? Senior, Holly Ross explores and critiques two common methods of analysis countries use when deciding whether or not to put Continue reading Thesis Corner: Is Hosting the Olympics Really Worth the Gold (Standard)?→

The Importance of Virtual World Economics

Posted on March 26, 2014 by Collin Hoover — 1 Comment ↓

How much would you pay for a virtual spaceship? Ten dollars? One hundred dollars? One thousand dollars? Try $10,000. Yes, for a virtual spaceship. With online gaming on the rise, what can we expect to see from games like World of Warcraft, Eve, and Second Life? Well there are big spenders, like the hot shots that own Titans in the massive interstellar reality Eve, which go for $10,000. Then there are people who have quit their day jobs to pursue a full-time career in acquiring and selling virtual items. What you have is a free market consisting of potions, laser Continue reading The Importance of Virtual World Economics→