Baumol has argued that the problem experienced by cities in providing metropolitan services might be the product of an uneven growth process. Slow growth sectors, he argues, could experience increased real costs and, unless demand for their services is highly inelastic, their outputs coudl decline severely. The present paper looks at these issues in a framework which allows explicity both for demand, for examination of the sources of productivity growth and for substitution between productive factors.
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Paper provided by Australian National University - Department of Economics in its series Papers with number
299.
Length: 15 pages Date of creation: 1996 Date of revision: Handle: RePEc:fth:aunaec:299
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