Disease or utopia? Testing Baumol in education
Baumol’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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- Jochen Hartwig, 2006.
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KOF Working papers
06-133, KOF Swiss Economic Institute, ETH Zurich.
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"Can Baumol's Model of Unbalanced Growth Contribute to Explaining the Secular Rise in Health Care Expenditure? An Alternative Test,"
KOF Working papers
07-178, KOF Swiss Economic Institute, ETH Zurich.
- Jochen Hartwig, 2011. "Can Baumol's model of unbalanced growth contribute to explaining the secular rise in health care expenditure? An alternative test," Applied Economics, Taylor & Francis Journals, vol. 43(2), pages 173-184.
- Colombier, Carsten, 2012. "Drivers of health care expenditure: Does Baumol's cost disease loom large?," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 12-5, University of Cologne, FiFo Institute for Public Economics.
- Robinson, Joan, 1969. "Macroeconomics of Unbalanced Growth: A Belated Comment," American Economic Review, American Economic Association, vol. 59(4), pages 633, Part I Se.
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