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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hartwig, Jochen, 2008.
"What drives health care expenditure?--Baumol's model of 'unbalanced growth' revisited,"
Journal of Health Economics,
Elsevier, vol. 27(3), pages 603-623, May.
- Jochen Hartwig, 2006. "What Drives Health Care Expenditure? Baumol’s Model of ‘Unbalanced Growth’ Revisited," KOF Working papers 06-133, 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,"
Taylor & Francis Journals, vol. 43(2), pages 173-184.
- Jochen Hartwig, 2007. "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.
- Bates, Laurie J. & Santerre, Rexford E., 2013. "Does the U.S. health care sector suffer from Baumol's cost disease? Evidence from the 50 states," Journal of Health Economics, Elsevier, vol. 32(2), pages 386-391.
- Robinson, Joan, 1969. "Macroeconomics of Unbalanced Growth: A Belated Comment," American Economic Review, American Economic Association, vol. 59(4), pages 633, Part I Se.
- 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.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:122:y:2014:i:2:p:220-223. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.