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Economics Behind a 5,000 Percent Price hike

Conventional pharmaceutical companies have a specific business strategy. They usually stay unprofitable for decades until their drugs are approved by the Food and Drug Administration to enter the market. Then they start to raise their drug price gradually at a rate above inflation every year. For instance, according to Deutsche Bank, Merck and Pfizer raised […]

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Questioning the Final RFS Rule, Part 3: Reasonableness of the Interpretation

Today’s article completes the discussion of EPA’s final rule for the Renewable Fuel Standard (RFS). Parts one and two in this series provided background on the RFS, a general review of the final rule and questioned EPA’s definition of the word ‘supply.’ This article delves into whether EPA’s interpretation in general can be considered reasonable […]

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Holiday Spirits: Notes from the Bourbon Trail

Good fortune recently provided me a brief, pre-holiday detour on Kentucky’s Bourbon Trail with my dad and brothers. The amber of the value-added agricultural products and the informative tours included a few interesting bits of farm policy and history – starting with the fact that our visit (unintentionally) coincided with the 82nd anniversary of the […]

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Can peers help improve crop revenues in villages in India?

Why do some farmers earn more than others? Scholars have worked to explain the large observed differences in economic outcomes across firms, households, and industries. In developing countries, where small farmers often face limited access to agricultural markets, their agricultural revenues can vary dramatically within the same region, even after accounting for differences in capital […]

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Does Food Cost More in Food Deserts?

Recent research has found that in the United States, limited access to healthy food is associated with a lower consumption of fruits and vegetables, and a higher probability of obesity and other dietary related health problems. Areas with limited food access and low average incomes are often referred to as food deserts. Several federal, state, […]

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The Changing Landscape of the Organic Food Industry

The Organic Foods Production Act of 1990 authorized the United States Department of Agriculture (USDA) to establish national standards for the marketing of organically produced products. In response to this, the USDA’s Agricultural Marketing Service (AMS) developed the National Organic Program, which was issued in 2000. According to the USDA-AMS website, an organic label “indicates […]

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Trading Off Fracked Natural Gas for Coal in China

China’s enormous growth in the past few decades stimulated a high demand for energy that historically has been fueled by coal. However, obtaining natural gas from fracking shale formations is becoming an economical competitor to coal in China because of advances in technology and economic incentives provided by the Chinese government (Thomas, p.1). Between 1984 […]

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Mortgage Consumer Protection in Action

Since the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) authorized the Consumer Financial Protection Bureau (CFPB) to regulate lending practices in the credit market, the CFPB has addressed the mortgage market with several amendments to existing mortgage regulations under the Truth in Lending Act (TILA) and the Homeowner Equity Protection Act (HOEPA). The TILA and […]

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