‘Baumol’s diseases’: the case of Switzerland
AbstractNordhaus (2008) has developed a testing strategy for what he calls ‘Baumol’s diseases’, by which name he designates a number of by-products of structural change that are unwanted from an economic policy perspective. He finds that the U.S. economy is strongly affected by the ‘diseases’. This paper applies Nordhaus’s testing methodology to Swiss data. The results suggest that – unlike the U.S. – Switzerland is not affected by the most serious of the ‘diseases’, namely the negative impact of structural change on economic growth.
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Bibliographic InfoPaper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 10-250.
Length: 28 pages
Date of creation: Jan 2010
Date of revision:
Baumol’s disease; productivity growth; Switzerland;
Other versions of this item:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
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