The University of Texas at Austin - Civitas Institute

Equilibrium Responses to Price Controls: A Supply-Chain Approach with Casey Mulligan

March 05

A Supply Chain Approach with Casey Mulligan from Civitas Institute on Vimeo.

Prices are regulated in many markets, ranging from healthcare to labor to telecommunications.  The regulated product or service may change so that at least part of the gains from trade can still be realized while complying with the regulation.  Treating the definition of products as an equilibrium outcome is possible merely by reinterpreting variables in the basic supply-demand model.  Specifically, price controls constrain the production-factor mix along the supply chain.  This approach yields surprising insights into the incidence of price regulations and their effects on the amount of trade.  It also reveals how many of the short-run effects of price controls can be opposite of what they are in the long run.

Lunch at noon, speaker at 12:30


Casey B. Mulligan is a Professor in Economics and the College at the University of Chicago, received his Ph.D. in economics from the University of Chicago in 1993. Previously, he has also served as Chief Economist of the White House Council of Economic Advisers and as a visiting professor teaching public economics at Harvard University, Clemson University, and the Irving B. Harris Graduate School of Public Policy Studies at the University of Chicago. He is affiliated with the National Bureau of Economic Research, the George J. Stigler Center for the Study of the Economy and the State, and the Population Research Center. Casey has received awards and fellowships from the Manhattan Institute, the National Science Foundation, Wolfram Research, the Alfred P. Sloan Foundation, the Smith-Richardson Foundation, and the John M. Olin Foundation. His research covers capital and labor taxation, the gender wage gap, health economics, Social Security, voting and the economics of aging. Mulligan has written widely on discrepancies between economic analysis and conventional wisdom. Before You’re Hired!, he wrote Chicago Price Theory, Side Effects and Complications, The Redistribution Recession, and Parental Priorities and Economic Inequality. He has also written numerous opeds and blog entries for the New York Times, the Wall Street Journal, the New York Post, the Chicago Tribune,, and other blogs and periodicals. Follow him on Parler or Twitter at @caseybmulligan.

More Upcoming Events