arbiter
JournalsPricingAccount

William Baumol and the Cost Disease

Alex Tabarrok

Research in the History of Economic Thought and Methodology2022https://doi.org/10.1108/s0743-41542022000040b003book-chapter
ABDC C
Weight
0.75

What the paper says

The Baumol effect follows from simple but deep microeconomic reasoning. All prices are relative prices, so if some goods are getting cheaper, others must be getting more expensive. Simple. But in transferring our attention about the cause of rising prices from stagnating sectors to progressive sectors, the Baumol effect radically changes our understanding of the causes, consequences, and evaluation of rising prices. Even today, the power of the Baumol effect to explain price changes through different time periods and places is underestimated. Throughout his career, Baumol returned to this simple idea many times, making it a key to his thought and his evolving views on long-term economic development.

7 citations

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1108/s0743-41542022000040b003

Or copy a formatted citation

@article{alex2022,
  title        = {{William Baumol and the Cost Disease}},
  author       = {Alex Tabarrok},
  journal      = {Research in the History of Economic Thought and Methodology},
  year         = {2022},
  doi          = {https://doi.org/https://doi.org/10.1108/s0743-41542022000040b003},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

William Baumol and the Cost Disease

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.75

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact1.00 × 0.4 = 0.40
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.