Artificial intelligence is one tool that can help us overcome the problem. The economist William Baumol is usually credited with the concept, often called Baumol’s Cost Disease or the Baumol Effect.

Baumol and Kirzner, through their work on entrepreneurship, show that the invisible hand of the market is more than a deus ex machina that generates coordination. Boettke puts it this way: ...

The Baumol-Tobin Cash Management Model of money demand serves as a vehicle with which to demonstrate how to use Microsoft Excel to solve optimization problems and do comparative statics analysis. The ...

Baumol, W. J. (1985). Productivity policy and the service sector. In R. P. Inman (ed.) Managing the service economy: prospects and problems. Cambridge: Cambridge ...

The question of restricting democracy came up because people tend to vote in ways that are contrary to their own interests in ...

Strom, and William J. Baumol How much credit can be given to entrepreneurship for the unprecedented innovation and growth of free-enterprise economies? In this book, some of the world's leading ...

Work expands to fill the time available, as C. Northcote Parkinson famously pointed out. In the 1960s the economist William ...

A fundamental economic truth explains ever-rising services inflation and why it’s a big problem for governments.

This is the essence of what has become known as “the Baumol effect” or, more dishearteningly, “Baumol’s cost disease”. The basic problem was laid out by economists William Baumol and William Bowen in ...

Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that ...

Regarding Tim Harford’s disquisition on the “Baumol effect” and his observation that “it still takes four musicians between 25 and 30 minutes” to play a Haydn string quartet, a few ...

Countries all over the world are facing record tax burdens to cover the rising cost of healthcare and other age-related ...