Tuesday, October 9, 2012

Baumol's disease, now in a book

Here is a review of something I must read: William Baumol on healthcare costs. "Baumol's cost disease" is one of the primary challenges for productivity. It says industries which require large amounts of expensive labor (like education and healthcare) get steadily more expensive - and often migrate to the public sector. And of course rising healthcare costs is one of the primary problems of society, and the largest driver of fiscal costs. So this is likely a wonky but essential read which I will come back to.


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