Disease or utopia? Testing Baumol in education
AbstractBaumol’s Cost Disease offers a compelling hypothesis of rising unit costs in stagnant sectors, but increased productivity in progressive sectors may generate the same prediction through income effects. We examine quantity (rather than expenditure) data from the U.S. educational sector to distinguish between these explanations. Our results indicate significant negative impacts of manufacturing productivity on teacher–pupil ratios.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 122 (2014)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/ecolet
Education costs; Baumol cost disease; Teacher–pupil ratios;
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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