The School of Economics is pleased to adverise the next lecture within the Contemporary Economic Issues series, which takes place on Monday the 4th of March, from 6pm, in lecture theatre Arts 01.02.  Dr Peter G. Moffatt (School of Economics, UEA) will talk about:

THE ECONOMICS OF THE SEX INDUSTRY

By Dr Peter G. Moffatt

Basic principles of economics are applied to the market for prostitution services.  First, we identify the position taken and the role played by this market within the commercial world, paying close attention to its interactions with other markets, and to the ways in which it is evolving over time.  International comparisons are made of legal status and industry size.  We then examine some theoretical models of prostitution, seeking among other things to explain how equilibrium earnings are so high in a profession with only rudimentary skill and capital requirements.  The distinction between the “primary” market of marriage and the “secondary” market of prostitution plays a central role throughout the economic analysis.  Within this framework, particular attention is paid to the concepts of opportunity cost, compensating wage differentials, price discrimination, asymmetric information, and welfare considerations.  We move on to examine empirical evidence relating to prostitution, focusing on an econometric model of the price of sexual services. Several economic concepts emerge in this empirical section, including age-earnings profiles, strategic behaviour, consumer surplus and sunk costs.  Finally, we examine the issue from a policy perspective, describing and evaluating various models of legalisation.

  Peter G. Moffatt is Reader in Econometrics in the School of Economics.  Most recently, his research has been in the area of “experimetrics”, that is, the econometric modelling of data from economic experiments.  Peter has also researched in many other fields, including the modelling of household debt, the modelling of the UK sex industry, and the theory of the consumer.

Refreshments will be provided at the end of the lecture which members of the public are warmly welcomed to attend at nil charge.