…driven largely by the rising prices of pharmaceuticals” of which the cost of manufacturing did not increase. Now Secretary of HHS, Alex Azar as the CEO of Eli Lilly raised…

This is a serious issue. New drugs enter the marketplace at a higher price to recoup the costs of development. Do the prices come down over a period of time?…

New home sales confirm upturn in housing, while FHFA and Case Shiller suggest increase in house prices is slowing This morning we got three reports on housing sales and prices….

…is that sales peak first, and prices peak afterward. Since new home prices declined on a seasonally adjusted basis beginning last month, if existing home prices have now joined them,…

…that the coin will come up heads is i. The outcome is somewhere in between. The market clearing price is still 0.5 so the efficient markets hypothesis still holds. However,…

…it “The Market’s Social Welfare Function.” This means he assumes the standard assumptions sufficient to make market outcomes Pareto efficient, rationality, perfect competition, market clearing, no externalities, symmetric information and…

…wants a central clearing system for OTC derivatives like CDS so regulators can know who owes what to whom. He wants more regulation of money market funds. He doesn’t propose…

…options, patterned after the Federal Employee Thrift Savings Program. A central clearing house would handle transactions. Social Security actuaries estimate that administrative charges associated with PRAs would be approximately 30…

…it would have effect on output. In particular increased Government consumption would crowd out consumption for fixed labor supply. This should cause increased labor supply. Case 4 requires market clearing…

…that Fama was assuming that the classical model, in which all markets including the labor market clear, holds. Brad DeLong notes that Fama made it very clear that he was…