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Fentanyl Elasticity: Cutsinger’s Solution

By Bryan Cutsinger | Aug 18 2025
Question: Suppose the demand for fentanyl is perfectly inelastic, and that the users of fentanyl steal from others to acquire the money to pay for it. In an effort to crack down on fentanyl use, the government imposes harsher penalties on suppliers of fentanyl, reducing its supply. How will this policy affect the amount of ...

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EconLog Price Theory: Fentanyl

By Bryan Cutsinger | Jul 29 2025

We’re bringing back price theory with our series on Price Theory problems with Professor Bryan Cutsinger. You can see all of Cutsinger’s problems and solutions by subscribing to his EconLog RSS feed. Share your proposed solutions in the Comments. Professor Cutsinger will be present in the comments for the next couple of weeks, and we’ll post his .. MORE

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I hadn't considered the immigration angle--I like it! -Bryan

Bryan Cutsinger, August 4

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International Trade

Useful Counterfactuals on Trade

By Jon Murphy | Aug 20, 2025 | 0

Counterfactuals are a necessary part of any scientific analysis: If X didn’t happen, then Y would have.  But counterfactuals, by definition, can never be known.  They never occurred, so we can never truly know if the counterfactual would have happened.  For example, there was much debate in the Truman Administration and the US military during World .. MORE

Labor Market

A Serious Look at Interest Rates

By Scott Sumner | Aug 19, 2025 | 7

These tweets caught my eye: I suspect that it would be possible to create some sort of argument that the AI boom is hurting the job market, but at the risk of being unserious I don’t find this one to be particularly persuasive.  Suppose I made the following argument: Interest rates would be lower if .. MORE

International Trade

Freedom as a Loophole

By Pierre Lemieux | Aug 19, 2025 | 10

The August 29 planned abolition of the de minimis customs exemption in the United States may come as a shock to those who believe that, as the physical universe is made of visible matter and dark matter, the political world is made of Democratic and Republican stuff, “the Left” and “the Right.” The restriction of .. MORE

Economic Education

Fentanyl Elasticity: Cutsinger’s Solution

By Bryan Cutsinger | Aug 18, 2025 | 13

Question: Suppose the demand for fentanyl is perfectly inelastic, and that the users of fentanyl steal from others to acquire the money to pay for it. In an effort to crack down on fentanyl use, the government imposes harsher penalties on suppliers of fentanyl, reducing its supply. How will this policy affect the amount of .. MORE

Economic History

My Weekly Reading and Viewing for August 17, 2025

By David Henderson | Aug 17, 2025 | 7

Government Should Experiment with Eliminating Patient Barriers, Not with Covering Ozempic by Akiva Malamet, Bautista Vivanco, and Michael F. Cannon, Cato at Liberty, August 11, 2025. Excerpts: While Ozempic and other GLP‑1 drugs are great at helping patients lose weight(among many other promising uses), these impressive medications come with an impressive price tag. For those paying out of .. MORE

Property Rights

Not in my back pocket (NIMBP)

By Scott Sumner | Aug 16, 2025 | 27

Most advanced countries are democracies. In most cases, these countries impose heavy taxes, with total revenues often falling between 30% and 50% of GDP. And yet, most people don’t like paying taxes. How can we explain this seeming contradiction? The mainstream view of both the economics profession and the general public seems to be that .. MORE

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Bloggers David Henderson, Alberto Mingardi, Scott Sumner, Pierre Lemieux, Kevin Corcoran, and guests write on topical economics of interest to them, illuminating subjects from politics and finance, to recent films and cultural observations, to history and literature.

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Economic History

My Weekly Reading and Viewing for August 17, 2025 7

Government Should Experiment with Eliminating Patient Barriers, Not with Covering Ozempic by Akiva Malamet, Bautista Vivanco, and Michael F. Cannon, Cato at Liberty, August 11, 2025. Excerpts: While Ozempic and other GLP‑1 drugs are great at helping patients lose weight(among many other promising uses), these impressive medications come with an impressive price tag. For those paying out of .. MORE

#ReadWithMe

We Have Never Been Woke Part 6: Consequences of Awokenings 2

Now that we’ve looked at Musa al-Gharbi’s description of what causes Awokenings to rise and eventually fall, what are the long term consequences of these movements? Given that Awokenings consist of wealthy and elite members of the symbolic capitalist class rising in support of antiracism, feminism, economic equality, and other social justice related causes, it’s .. MORE

International Trade

Jagdish Bhagwati on Protectionism 8

With all the discussion of free trade, tariffs, and non-tariff barriers, I decided to pick up and quickly skim a short, delightful book by trade economist Jagdish Bhagwati. It’s his 1988 book, titled simply Protectionism. I wrote a short review of the book in the June 5, 1989 issue of Fortune. One of the issues, .. MORE

Book Reviews and Suggested Readings

The Cost of Building Progress

By Matt Zwolinski

Book Review of: Why Nothing Works: Who Killed Progress–and How to Bring It Back by Marc J. Dunkelman,1; and Abundance by Ezra Klein and Derek Thompson.2 Vera Coking and the Cost of Progress In 1961, Vera Coking and her husband purchased a home in Atlantic City, New Jersey. They paid $20,000 for the modest three-story .. MORE

Medical Practice Without Consent

By Arnold Kling

While informed consent and respect for autonomy govern how health care practitioners interact with their patients, this new ethos is absent when it comes to the government asserting authority over adults’ health decisions. The government dictates what kinds of health professionals adults may consult. It determines what medicines adults may purchase and under which circumstances .. MORE

Law, Legislation, and Libertarianism

By Alberto Mingardi

A Book Review of Common Law Liberalism: A New Theory of the Libertarian Society, by John Hasnas.1 “Look around.” John Hasnas’s main political advice may sound extravagant. But his remarkable book, Common Law Liberalism,1 is a caveat against “inattentional blindness” of the sort social scientists often fall victim to—and those who like flirting with theory .. MORE

Happiness, Progress and the “Vanity of the Philosopher”. Part 2. The Trial of Annie Besant and Charles Bradlaugh

By Sandra J. Peart and David M. Levy

“I say that man’s reason is given him by nature in order that he may, by his reason and by his intellect, prevent that suffering which results from the laws of nature, if you take nature without man.”—Annie Besant. 1 Introduction “The dramatic episode that clarified the difference between classical political economy and Darwin’s biology .. MORE