Article
Licensed
Unlicensed
Requires Authentication
Baumol's Diseases: A Macroeconomic Perspective
-
William D Nordhaus
Published/Copyright:
February 27, 2008
William Baumol and his co-authors have analyzed the impact of differential productivity growth on the health of different sectors and on the overall economy. They argued that technologically stagnant sectors experience above average cost and price increases, take a rising share of national output, and slow aggregate productivity growth. Using industry data for the period 1948-2001, the present study investigates Baumol's diseases for the overall economy. It finds that technologically stagnant sectors clearly have rising relative prices and declining relative real outputs. Additionally, technologically progressive sectors tend to have slower hours and employment growth outside of manufacturing. Finally, sectoral shifts have tended to lower overall productivity growth as the share of stagnant sectors has risen over the second half of the twentieth century.
Published Online: 2008-2-27
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
You are currently not able to access this content.
You are currently not able to access this content.
Articles in the same Issue
- Topics Article
- The Importance of Industrial Policy in Quality-Ladder Growth Models
- The Evolution of International Output Differences (1970-2000): From Factors to Productivity
- Non-Linearities and Unit Roots in G7 Macroeconomic Variables
- Mitigating the Growth-Effects of Inflation through Financial Development
- The Dynamics of European Inflation Expectations
- Target Saving in an Overlapping Generations Model
- Inequality, Volatility and Labour Market Efficiency
- Expected Equity Returns and the Demand for Money
- Forecasting with DSGE Models: The Role of Nonlinearities
- Job Reallocation, Unemployment and Hours in a New Keynesian Model
- Consolidation of Student Loan Repayments and Default Incentives
- Advent of Industrial Mass Production: Three Stages of Economic Development
- The Japanese Depression in the Interwar Period: A General Equilibrium Analysis
- Determinants of Bilateral Remittance Flows
- Cyclical Behavior of Unemployment and Job Vacancies: A Comparison between Canada and the United States
- Economic and Socio-Political Determinants of de Facto Monetary Institutions and Inflationary Outcomes
- On Equilibrium Determinacy in New Keynesian Models with Staggered Wage and Price Setting
- Contributions Article
- Growth-Led Exports: Implications for the Cross-Country Effects of Shocks to Potential Output
- Monetary Policy and Fiscal Rules
- Choosing Longevity with Overlapping Generations: To Be or Not to Be in Diamond's Model
- Nonlinear Taylor Rules and Asymmetric Preferences in Central Banking: Evidence from the United Kingdom and the United States
- Baumol's Diseases: A Macroeconomic Perspective
- Employment Growth in the American Urban Hierarchy: Long Live Distance
- Endogenous Persistence and the Performance of Inertial Targeting Rules
- Unemployment, Imperfect Risk Sharing, and the Monetary Business Cycle
- Technological Progress and the Urbanization Process
- Convergence by Parts
- Estimating Returns to Schooling from State-Level Data: A Macro-Mincerian Approach
- Great Moderation(s) and US Interest Rates: Unconditional Evidence
- Advances Article
- Downward Nominal Wage Rigidity in the OECD
- Monetary Policy under Downward Nominal Wage Rigidity
- Africa: Is Aid an Answer?
Articles in the same Issue
- Topics Article
- The Importance of Industrial Policy in Quality-Ladder Growth Models
- The Evolution of International Output Differences (1970-2000): From Factors to Productivity
- Non-Linearities and Unit Roots in G7 Macroeconomic Variables
- Mitigating the Growth-Effects of Inflation through Financial Development
- The Dynamics of European Inflation Expectations
- Target Saving in an Overlapping Generations Model
- Inequality, Volatility and Labour Market Efficiency
- Expected Equity Returns and the Demand for Money
- Forecasting with DSGE Models: The Role of Nonlinearities
- Job Reallocation, Unemployment and Hours in a New Keynesian Model
- Consolidation of Student Loan Repayments and Default Incentives
- Advent of Industrial Mass Production: Three Stages of Economic Development
- The Japanese Depression in the Interwar Period: A General Equilibrium Analysis
- Determinants of Bilateral Remittance Flows
- Cyclical Behavior of Unemployment and Job Vacancies: A Comparison between Canada and the United States
- Economic and Socio-Political Determinants of de Facto Monetary Institutions and Inflationary Outcomes
- On Equilibrium Determinacy in New Keynesian Models with Staggered Wage and Price Setting
- Contributions Article
- Growth-Led Exports: Implications for the Cross-Country Effects of Shocks to Potential Output
- Monetary Policy and Fiscal Rules
- Choosing Longevity with Overlapping Generations: To Be or Not to Be in Diamond's Model
- Nonlinear Taylor Rules and Asymmetric Preferences in Central Banking: Evidence from the United Kingdom and the United States
- Baumol's Diseases: A Macroeconomic Perspective
- Employment Growth in the American Urban Hierarchy: Long Live Distance
- Endogenous Persistence and the Performance of Inertial Targeting Rules
- Unemployment, Imperfect Risk Sharing, and the Monetary Business Cycle
- Technological Progress and the Urbanization Process
- Convergence by Parts
- Estimating Returns to Schooling from State-Level Data: A Macro-Mincerian Approach
- Great Moderation(s) and US Interest Rates: Unconditional Evidence
- Advances Article
- Downward Nominal Wage Rigidity in the OECD
- Monetary Policy under Downward Nominal Wage Rigidity
- Africa: Is Aid an Answer?
