Disease or Utopia? Testing Baumol in Education
8 Pages Posted: 26 Jun 2013 Last revised: 25 Oct 2013
Date Written: June 25, 2013
Abstract
Baumol's Cost Disease offers a compelling hypothesis of rising unit costs in stagnant sectors, but increased productivity in progressive sectors may generate the same prediction through income effects. We examine quantity (rather than expenditure) data from the U.S. educational sector to distinguish between these explanations. Our results indicate significant negative impacts of manufacturing productivity on teacher-pupil ratios.
Keywords: Education costs, Baumol cost disease
JEL Classification: I20, O40
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Anita Wölfl
-
Performance Rating and Yardstick Competition in Social Service Provision
-
Comparing Labour Productivity Growth in the OECD Area: The Role of Measurement
By Nadim Ahmad, François Lequiller, ...
-
What Drives Health Care Expenditure? Baumol's Model of 'Unbalanced Growth' Revisited
-
The Service Economy in OECD Countries
By Anita Wölfl
-
Measuring the Interaction between Manufacturing and Services
By Dirk Pilat and Anita Wölfl
-
Mental Health Expenditure in England: A Spatial Panel Approach
By Francesco Moscone, Martin Knapp, ...
-
Medical Care Price Indices: Problems and Opportunities / the Chung-Hua Lectures