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The myth of the service economy

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  • Sergio Parrinello
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    Abstract

    In this article the author, after a critical assessment of the main notions of services developed in economics, presents a revised definition of services based on process analysis. A corresponding distinction is made between material and non-material goods, on the one hand, and services, on the other hand. The proposed definition is applied to extend Sraffa’s theory of prices and to clarify that the expansion of the service activities, as such, is not related to knowledge creation and information diffusion. It is suggested that the dynamics of such non-material factors, instead of being reflected by the change in the relative weights of goods and services, should be assessed on the basis of the change in the tasks and qualities of the labour force.

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    Bibliographic Info

    Paper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 55.

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    Length: 32
    Date of creation: Feb 2002
    Date of revision:
    Handle: RePEc:sap:wpaper:wp55

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    Related research

    Keywords: Services; Process analysis; Classical Economics.;

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