Baumol effect

English Etymology Identified by American economist William J. Baumol in the 1960s. Proper noun en economics A theorem stating that there is a tendency for wages in jobs that have experienced little or no increase in labor productivity to rise in response to rising wages in other jobs that did experience high productivity growth. en Baumol's disease Baumol's cost disease cost disease en The Baumol effect may arise if (i) price inflation in the medical sector changes HCE, (ii) macroeconomic labour productivity changes due ot ageing, and (iii) labour productivity change in the health care sector lags behind labour productivity change in the rest of the economy. 184 Ageing and health care expenditure growth Ed Westerhout International Handbook on Ageing and Public Policy Kate Hamblin, Sarah Harper 9780857933911 Edward Elgar 2014 en Tabarrok prefers to call it the Baumol effect, because it is an inevitable consequence of the falling costs of production (and hence prices) of some goods, that other goods will become relatively more expensive. yes Italics in original. Introduction –The Work of William J. Baumol: Heterodox Inspirations and Neoclassical Models Erwin Dekker Research in the History of Economic Thought and Methodology Including a Symposium On the Work of William J. Baumol: Heterodox Inspirations and Neoclassical Models 40 Carlos Eduardo Suprinyak, Luca Fiorito, Scott Scheall 9781803827094 2022-09-08 Emerald Publishing Limited en eponyms