Matching Items (18)

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Impact of R&D Expenditure on Pharmaceutical Drug Prices: A Cross-Country Comparison

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Over the past few decades, pharmaceutical spending has been increasing, due in large part to high prices of prescription drugs. In the United States, pharmaceutical manufacturers defend high prices by citing the high costs of research and development, which they

Over the past few decades, pharmaceutical spending has been increasing, due in large part to high prices of prescription drugs. In the United States, pharmaceutical manufacturers defend high prices by citing the high costs of research and development, which they argue spurns innovation and makes up for the high prices paid by consumers. This study seeks to determine the validity of that claim and to fully understand the impact that R&D expenditures have on pharmaceutical drug prices. Employing a fixed effects regression, this study assesses the relationship between per capita R&D expenditure and per capita pharmaceutical spending (a stand-in variable for average drug price) for twelve OECD-member countries over a span of seven years. Holding country and year effects fixed, this regression shows a nearly one to one positive relationship between R&D expenditure and pharmaceutical spending, meaning a one-dollar increase in R&D expenditure increases pharmaceutical spending by around one-dollar as well. This impact, while statistically significant, is not that large, implying that R&D expenditures are not a strong driver of drug prices, contrary to what many pharmaceutical manufacturers argue.

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2018-05

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The Emergence and Evolution of Gendered Products in America

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Gendered products are prevalent in the modern consumer products market. This paper provides historical context for the change in the consumer products market which started as a genderless product market and shifted to a female consumer-centric market reflecting the economic

Gendered products are prevalent in the modern consumer products market. This paper provides historical context for the change in the consumer products market which started as a genderless product market and shifted to a female consumer-centric market reflecting the economic needs of the United States through World War I and II. This female consumer-centric market results from the rise of consumer research and many household products are created to satisfy female consumer preferences. But as the consumer demographics change with more women entering the labor force, the types of products being sold change to appeal to the increasing number of male consumers who begin shopping for themselves. This increase in male products is what leads to the booming men's personal care products market that we see today. With an increase in gendered products, there has also been an increase in the number of backlash companies face for creating specific gendered products. This paper outlines the history of gendered products and the potential future of products in the United States.

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2018-05

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The Next Great U.S. Open

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The United States Open Championship, often referred to as the U.S. Open, is one of the four major championships in professional golf. Held annually in June, the tournament changes venues each year and must meet a strict criterion to challenge

The United States Open Championship, often referred to as the U.S. Open, is one of the four major championships in professional golf. Held annually in June, the tournament changes venues each year and must meet a strict criterion to challenge the best players in the world. Undergoing an evaluation conducted by the United States Golf Association, the potential course is assessed on its quality and design. Along with this, the course is evaluated on its ability to hold various obstructions and thousands of spectators, while also providing plenty of space for parking, ease of transportation access, and a close proximity to local airports and lodging. Of the thousands of courses in the United States, only a select few have had the opportunity to host a U.S. Open, and far fewer have had the chance to host it on multiple occasions. Therefore, we are prepared to create the next venue that has the capabilities of hosting many U.S. Open tournaments for years to come.

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2018-05

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No Worker Left Behind: An Analysis on a Universal Basic Income

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Many fear that the growth of automation and artificial intelligence will lead to massive unemployment since human labor would no longer be needed. Although automation does displace workers from their current jobs, it is unclear the total net effect on

Many fear that the growth of automation and artificial intelligence will lead to massive unemployment since human labor would no longer be needed. Although automation does displace workers from their current jobs, it is unclear the total net effect on jobs this period of advancement will have. One possible solution to help displaced workers is a Universal Basic Income. A Universal Basic Income(UBI) is a set payment paid to all members of society regardless of working status. Compared to current unemployment programs, a Universal Basic Income does not restrict participants in how to spend the money and is more inclusive. This paper examines the effects of a UBI on a person's motivation to work through a study on current college students. There is reason to believe that a Universal Basic Income will lead to fewer people working as people may become dependent on a base payment to meet their basic needs and not look for work. In addition, some people may drop out of their current jobs and rely on a UBI as their main form of income. The current literature does not offer a consensus opinion on this relationship and more studies are being completed with the threat of mass unemployment looming. This study shows the effects of a UBI on participants' willingness to work and then applies these results to the current economic model. With these results and new economic model, a decision about future policies surrounding a UBI can be made.

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2018-05

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An Analysis of the Recreational Marijuana Industry in Colorado

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Since 2014, the legal marijuana industry has flourished in Colorado, the first state to ever legalize its recreational use in the United States. It is necessary to fully understand the economic impact of the implementation of the recreational system as

Since 2014, the legal marijuana industry has flourished in Colorado, the first state to ever legalize its recreational use in the United States. It is necessary to fully understand the economic impact of the implementation of the recreational system as well as the characteristics of the market for lawmakers, business owners, and voters to make educated decisions on future legislation. This report will delve into these matters in an objective manner to provide all the stakeholders in any present or future recreational marijuana market (users, business owners, legislators) with accurate information on the current state of the industry. Starting with an introduction of the history of marijuana in the United States, as well as the factors that led to its illegality, offers insight into the past and current laws currently impacting the recreational marijuana market in Colorado, with special emphasis on the state regulatory framework in place at this time. The analysis will include an in-depth examination of the current market forces at play in the recreational marijuana market, including technological, sociological, and economic factors, with a look at current business-level strategies for marijuana businesses and the threats arising from alcohol and tobacco, the drug's main substitutes. This report will explain the tax framework in place in Colorado, and investigate trends in market sales and tax revenues, including detailed statistics on the distribution of tax revenue throughout the state. A comprehensive analysis of the legislative issues the market faces, both in Colorado and across the country, will thoroughly indicate the major problems the industry must overcome in the future, or whether it can do so at all. These will include difficulties in the banking, taxation, insurance, and bankruptcy systems that marijuana-related businesses currently face.

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2018-05

Substituting Hospitals: An Analysis of Urgent Care Centers in the Market for Healthcare

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The primary purpose of this paper is to analyze urgent care centers and explain their role within the U.S. healthcare system. The introduction of urgent care into the market for health care services has brought with it a new way

The primary purpose of this paper is to analyze urgent care centers and explain their role within the U.S. healthcare system. The introduction of urgent care into the market for health care services has brought with it a new way for consumers to receive non-emergent healthcare outside of traditional hours. Urgent care is often cited as a plausible alternative to care received at an emergency department or primary care physician's office. One of the key questions the author attempts to answer is: "To what degree are urgent care centers an economic substitute to emergency departments or physician's offices?" This paper looks at both projected demand from currently operating urgent care centers and consumer preference surveys to estimate the willingness of consumers to use urgent care. The method used to accomplish this task has been compiling scholarly research and data on urgent care centers. After a thorough examination of relevant studies and datasets, urgent care centers have been found to be just as preferred as emergency departments when considering non-emergent cases, specifically among individuals aged 18-44. The clear majority of consumers still prefer visiting a primary care physician over an urgent care center when it comes to episodic care, however. When taking into account wait times, differences in cost, and ease of access, urgent care becomes much more preferred than an emergency department and weakly preferred to a physician's office. There are still some concerns with urgent care, however. Questions of capacity to meet demand, access for underserved communities, and susceptibility to adverse selection have yet to be fully explored.

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2018-05

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Probabilistic Voting: An Addition to theDowns Two Party Voting Model

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This paper proposes that voter decision making is determined by more than just the policy positions adopted by the candidates in the election as proposed by Antony Downs (1957). Using a vector valued voting model proposed by William Foster (2014),

This paper proposes that voter decision making is determined by more than just the policy positions adopted by the candidates in the election as proposed by Antony Downs (1957). Using a vector valued voting model proposed by William Foster (2014), voter behavior can be described by a mathematical model. Voters assign scores to candidates based on both policy and non-policy considerations, then voters then decide which candidate they support based on which has a higher candidate score. The traditional assumption that most of the population will vote is replaced by a function describing the probability of voting based on candidate scores assigned by individual voters. If the voter's likelihood of voting is not certain, but rather modelled by a sigmoid curve, it has radical implications on party decisions and actions taken during an election cycle. The model also includes a significant interaction term between the candidate scores and the differential between the scores which enhances the Downsian model. The thesis is proposed in a similar manner to Downs' original presentation, including several allegorical and hypothetical examples of the model in action. The results of the model reveal that single issue voters can have a significant impact on election outcomes, and that the weight of non-policy considerations is high enough that political parties would spend large sums of money on campaigning. Future research will include creating an experiment to verify the interaction terms, as well as adjusting the model for individual costs so that more empirical analysis may be completed.

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2019-05

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Occupation Share Changes and the Welfare Outcomes of Displaced Workers

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Individual’s outcomes are significantly affected by occupation share changes. This is supported by regression analysis of the Displace Workers Survey a supplement to the Current Population Survey – a nationally representative panel data set. Regression analysis is used to demonstrate

Individual’s outcomes are significantly affected by occupation share changes. This is supported by regression analysis of the Displace Workers Survey a supplement to the Current Population Survey – a nationally representative panel data set. Regression analysis is used to demonstrate that individuals in occupations that are increasing as a share of the total number of workers are better off across the gamut of outcomes than their counterparts in occupations that are decreasing as a share of the total number of workers. Workers in occupations with increasing shares are more likely to find jobs quickly, less likely to experience significant wage losses, less likely to change occupation, and less likely to go on to welfare.

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2019-05

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Nudged Towards Rationality: Probability Distortion with and without Expected Value

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This paper analyzes responses to a survey using a modified fourfold pattern of preference to determine if implicit information, once made explicit, is practically significant in nudging irrational decision makers towards more rational decisions. Respondents chose between two scenarios and

This paper analyzes responses to a survey using a modified fourfold pattern of preference to determine if implicit information, once made explicit, is practically significant in nudging irrational decision makers towards more rational decisions. Respondents chose between two scenarios and an option for indifference for each of the four questions from the fourfold pattern with expected value being implicit information. Then respondents were asked familiarity with expected value and given the same four questions again but with the expected value for each scenario then explicitly given. Respondents were asked to give feedback if their answers had changed and if the addition of the explicit information was the reason for that change. Results found the addition of the explicit information in the form of expected value to be practically significant with ~90% of respondents who changed their answers giving that for the reason. In the implicit section of the survey, three out of four of the questions had a response majority of lower expected value answers given compared to the alternative. In the explicit section of the survey, all four questions achieved a response majority of higher expected value answers given compared to the alternative. In moving from the implicit to the explicit section, for each question, the scenario with lower expected value experienced a decrease in percentage of responses, and the scenario with higher expected value and indifference between the scenarios both experienced an increase in percentage of responses.

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2019-05

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Aging Population and Education Finance Under Endogenous Migration

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This paper explores the potential impact of population aging trends on support for the financing of public education using an applied theoretical approach. As demographic projections anticipate significant increases in the relative share of elderly individuals in the population, the

This paper explores the potential impact of population aging trends on support for the financing of public education using an applied theoretical approach. As demographic projections anticipate significant increases in the relative share of elderly individuals in the population, the question of how age distribution in a population effects support for public goods such as education becomes increasingly significant. Conventional wisdom suggests that an upward shift in age distribution – increasing the share of elderly individuals relative to workers – will result in decreased support for public education due to elderly individuals’ lack of utility from investments in future productivity. This paper demonstrates that such conventional wisdom does not hold in a simple two-district overlapping generations model and shows that an increasing share of elderly individuals in the population may result in increased levels of funding for education due to changes in a district’s tax base.

The model developed in this paper builds on the work of Mark Gradstein and Michael Kaganovich who demonstrated that while increasing longevity in a two-generation OLG model with two municipal districts creates a downward pressure on tax rates, this effect is dominated by changing political incentives among workers. This paper expands upon the Gradstein-Kaganovich model by introducing endogenous migration rates between districts in the model in order to reflect households’ incentives to minimize tax burden in retirement. It can be shown that as consumers’ responsiveness to differences in tax rates increases, the difference in education funding levels between districts decreases despite the difference in the relative share of elderly individuals in each population increasing. This result stems from the changes in each districts’ tax base brought on by the endogenous migration rate. Based on this finding, this study concludes that retirees function as a positive financial externality when education funding is tied to consumption levels and reaffirms Gradstein and Kaganovich’s conclusion that increasing the relative share of elderly individuals in a population does not necessarily result in decreased funding for public education as conventional wisdom would suggest.

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2019-05