Tyler Cowen is now pondering how we might handle the supposed shortage of flu vaccines.
You might think that Dr. Cowen, as an economist who has no doubt taken, if not taught, Econ 101, would answer: charge a market price. There are never shortages for a good where the market determines the price.
But that is not what he suggests. Indeed, he does not mention the possibility at all.
Instead, he suggests that “we” (whoever that may be) figure out who potential “superspreaders“ of the disease are, and then “we” have economists “come up with useful incentives” to get those people to take them.
Why prices would not achieve appropriate allocation of flu vaccines, without tampering of government economists, is never explained.
Dr. Cowen seems to be in the peculiar habit of finding unnecessarily complex answers to what most econ students know are simple questions.
UPDATE: In a new post, Dr. Cowen gets a bit closer to the heart of the matter. Meanwhile, his co-blogger is puzzled as to why he doesn’t always behave like some economic models say he should. (Reblogged from Huebert)
