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were far from existing refining and pipeline infrastructure. The production increase led to substantial discounts for oil … producers to reflect the high cost of alternative transportation methods. I show how the expansion of the crude oil pipeline … per barrel in 2016. Using data for the Permian Basin, I estimate that the elimination of pipeline constraints increased …
Persistent link: https://www.econbiz.de/10012453543
Stated safety concerns are a major impediment to making necessary expansions to the natural gas pipeline network. While … prices responded to a deadly 2010 pipeline explosion in San Bruno, CA, which shocked both attention and information. Using …, as well as the implications for future pipeline expansions …
Persistent link: https://www.econbiz.de/10012453853
, owing to delays in pipeline construction, or whether it will be a durable presence in the industry by reducing investment in … pipeline infrastructure. We develop a model of crude oil transportation that highlights how railroads generate option value by … constructed Dakota Access Pipeline and find that the elasticity of pipeline capacity to railroad transportation costs lies between …
Persistent link: https://www.econbiz.de/10012453856
pipeline spills and accidents, important externalities - air pollution and greenhouse gas costs - have been largely overlooked …
Persistent link: https://www.econbiz.de/10012453859
Proposed "delinking" legislation would prohibit Pharmacy Benefit Managers (PBMs) from being remunerated based on the rebates and discounts they negotiate for drug insurance plans serving Medicare beneficiaries. This policy would significantly change drug pricing and utilization and shift...
Persistent link: https://www.econbiz.de/10014372424
Manufacturers of durable goods can encourage consumers facing transaction costs to upgrade by accepting used units as trade-ins. These "buyback schemes" increase demand for new units, but increase the supply of used units if trade-ins are resold. In this paper, I investigate the equilibrium...
Persistent link: https://www.econbiz.de/10013388853
In theory, equilibrium profits for drug patent holders would not involve significant restraints on production and patient utilization if the market had a mechanism for two-part pricing (Oi 1971) or quantity commitments (Murphy, Snyder, and Topel 2014). In fact, patent expiration has little...
Persistent link: https://www.econbiz.de/10013334448
Consider an economy in which agents face income risk but interact in a stochastic financial network where the randomness is dictated by both chance and choice. We study the financial centrality of an agent defined as the ex-ante marginal social value of providing a small liquid asset to that...
Persistent link: https://www.econbiz.de/10013334487
We characterize what features make supply chains more resilient. Using new data on the universe of firm-to-firm transactions from an Indian state, we identify firms with larger supplier risk following the Covid-19 lockdowns. Using an event-study design we find firms with suppliers in...
Persistent link: https://www.econbiz.de/10013462737
This paper provides the first quantitative economic models of pharmacy benefit management regulation. The price-theoretic models allow for various market frictions and imperfections including market power, coordination costs, tax distortions, and incomplete innovation incentives. A rigorous...
Persistent link: https://www.econbiz.de/10014247918