Michael Hoover wrote:
according to william baumol, declining prices for produced goods in a 'high-tech' economy will - at some point - cause wages in labor-intensive services to increase...
is above correct formulation, if not, what is... is baumol's disease an economic 'law'...
thanks in advance for comments... michael hoover
Michael P clarified the definition. Triplett & Bosworth say Baumol's disease has been cured: <http://www.brookings.edu/es/research/projects/productivity/workshops/20020517_triplett.pdf>. But from the looks of the fourth quarter productivity data for the U.S., we've had a relapse.
Doug
