A highlight from Prof. Matthew Johnson, Assistant Professor of Economics at Duke University
But simultaneously opportunity constant increasing. Safety that action. That's one of the nucleus staying interesting thing. It's a big country intuitive. But i can see why employees might do that. Then things really good. They they want do. Essentially produce more than increase profits and cash flows and saw put safety as safety Eastbound you're finding so that's that's exactly the idea and just kind of a trade off that we outlined in the beginning of that paper part part of the story is exactly as you said when the sun is shining make right when conditions are good. I know that if my firm You know pumps that a lot of whatever i'm producing and we can sell that a high price. Now is the time to produce and now whether investing and sate workplace safety inputs. Right is is inherent off with producing. But some some things are so we're workplace safety with the occurrence of workplace. Injuries is a product of lots of things. But some of them are you know. Do you take time out of the day to inspect your capital equipment. You know your excellent equipment to make sure it's not defective. It's going to blow up. Do you let your workers take a few hours other day to attend a safety training. Right you upgrade. The you know the goggles. Another sort of personal protective quote. You're wearing these are all things that can limit injuries. But they all come at the expense of short-term production so when times are really good in might be much more costly for firms to undertake these kinds of actions that can in the longer run improve safety but at the short run come. The expensive production is interesting. As you know Most commodities had been in them and so mighty profitability tend to be means wooding and so the general tendency might be that Rent cashflows are high to delay safety investments on the clintons. That things are going to sort of slow down in the future. I think that's right. I mean yeah because if you look at it in this study we looked at mines that produce globally traded commodities like gold and silver and copper. And yet if you look at the kind of time path of many of these they tend to exhibit something not a random.