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Further insights into 'Baumol's disease' in Japan

Author

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  • Jochen Hartwig

    (Department of Economics and Business Administration, Chemnitz University of Technology, Germany)

Abstract

Nishi (2018) has broken new ground in analysing whether Japan suffers from ‘Baumol's disease'. More precisely, he focuses on just one of six symptoms which Nordhaus (2008) referred to as ‘Baumol's diseases', namely on the ‘growth disease'. Nishi finds that Japan is suffering from Baumol's growth disease, although its impact is not very strong. This note aims at adding further insights into Baumol's disease in Japan by applying Nordhaus's testing strategy to the other five symptoms. Of these, the ‘cost and price disease' is most salient in Japanese data.

Suggested Citation

  • Jochen Hartwig, 2019. "Further insights into 'Baumol's disease' in Japan," Economics Bulletin, AccessEcon, vol. 39(4), pages 2308-2316.
    • Handle: RePEc:ebl:ecbull:eb-19-00584
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I4-P215.pdf
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    References listed on IDEAS

    as
    1. Nordhaus William D, 2008. "Baumol's Diseases: A Macroeconomic Perspective," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-39, February.
    2. Oulton, Nicholas, 2001. "Must the Growth Rate Decline? Baumol's Unbalanced Growth Revisited," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 605-627, October.
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    4. Hiroshi Nishi, 2019. "Sources of Productivity Growth Dynamics: Is Japan Suffering From Baumol's Growth Disease?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(3), pages 592-616, September.
    5. Hartwig, Jochen & Krämer, Hagen, 2019. "The ‘Growth Disease’ at 50 – Baumol after Oulton," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 463-471.
    6. Tatsuya Kimura & Martin Schulz, 2004. "Industry in Japan : Structural Change, Productivity, and Chances for Growth," Japanese Economy, Taylor & Francis Journals, vol. 32(1), pages 5-44.
    7. Enrico Tanuwidjaja & Shandre Thangavelu, 2007. "Structural Change and Productivity Growth in the Japanese Manufacturing Industry," Global Economic Review, Taylor & Francis Journals, vol. 36(4), pages 385-405.
    8. Jochen Hartwig, 2011. "Testing The Baumol–Nordhaus Model With Eu Klems Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 471-489, September.
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    More about this item

    Keywords

    Structural change; productivity growth; ‘Baumol's disease'; Japan; EU KLEMS data;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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