Faculty News

Prof. William Baumol's cost disease theory is highlighted

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Excerpt from Forbes -- "[Baumols' Cost Disease] is the idea that it’s much easier to improve productivity in some areas than it is in others. Specifically, Baumol is addressing the difficulty of improving labour productivity in services as against the ease with which it can be increased in manufacturing. It is this which tells us that we should expect health care and college costs to rise faster than general inflation because these are largely services provided by human labour."

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Additional coverage appeared on The Chicago Tribune.