Short-run versus long-run marginal cost pricing

The U.S. pharmaceutical industry has again become the focus of considerable controversy. In understanding the economics underlying this industry, distinctions between short, medium and long-run costs are critical, as is that between economic and accounting costs. Consumers' heterogeneous valuations create strong incentives for non-uniform pricing and targeted marketing. The conflict between static efficiency (price new drugs low, near short-run marginal cost) and dynamic efficiency (price new drugs high, maintain incentives for innovation) is deep and enduring. This trade-off is becoming more severe as the relative costs of bringing new drugs to market have increased sharply.

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Migration and US agricultural competitiveness

MIGRATION LETTERS ◽

10.33182/ml.v10i2.141 ◽

2013 ◽

Vol 10 (2) ◽

pp. 159-179 ◽

Cited By ~ 2

Author(s):

Philip L. Martin

Keyword(s):

Farm Workers ◽

Easy Access ◽

Foreign Born ◽

Guest Workers ◽

Long Run ◽

Short Run ◽

Lower Wage ◽

The Government ◽

The One

Agriculture has one of the highest shares of foreign-born and unauthorized workers among US industries; over three-fourths of hired farm workers were born abroad, usually in Mexico, and over half of all farm workers are unauthorized. Farm employers are among the few to openly acknowledge their dependence on migrant and unauthorized workers, and they oppose efforts to reduce unauthorized migration unless the government legalizes currently illegal farm workers or provides easy access to legal guest workers. The effects of migrants on agricultural competitiveness are mixed. On the one hand, wages held down by migrants keep labour-intensive commodities competitive in the short run, but the fact that most labour-intensive commodities are shipped long distances means that long-run US competitiveness may be eroded as US farmers have fewer incentives to develop labour-saving and productivity-improving methods of farming and production in lower-wage countries expands.

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Electricity consumption and economic growth in ASEAN

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v5i2.8801 ◽

2017 ◽

Vol 5 (2) ◽

pp. 16

Author(s):

Ahmad Ghazali Ismail ◽

Arlinah Abd Rashid ◽

Azlina Hanif

Keyword(s):

Economic Growth ◽

Energy Use ◽

Electricity Consumption ◽

Panel Estimation ◽

Real Gdp ◽

Long Run ◽

Bidirectional Relationship ◽

Short Run ◽

Using Data ◽

The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

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