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Creative Inputs as the Cause of Baumol's Cost Disease: The Example of Media Services

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  • Paschal Preston
  • Sergio Sparviero

Abstract

This article explains that the most important aspect of W. J. Baumol's idea of cost disease is the fundamental intuition that there are some types of labor's contributions that are irreplaceable by new technologies. These contributions are indentified as “creative inputs”: original ideas, concepts, actions, and inductive solutions to ill-defined problems. This article also empirically demonstrates that media content activities are stagnant, whereas activities involved in the distribution and exhibition of media content are progressive.

Suggested Citation

  • Paschal Preston & Sergio Sparviero, 2009. "Creative Inputs as the Cause of Baumol's Cost Disease: The Example of Media Services," Journal of Media Economics, Taylor & Francis Journals, vol. 22(4), pages 239-252.
  • Handle: RePEc:taf:jmedec:v:22:y:2009:i:4:p:239-252
    DOI: 10.1080/08997760903375910
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    Cited by:

    1. Haans, Richard & van Witteloostuijn, Arjen, 2018. "Expected job creation across the cultural industries : A sectoral division and its implications for cultural policy," Other publications TiSEM 7ce678fe-ba20-4daa-907c-c, Tilburg University, School of Economics and Management.

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