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Politics : The Trump Presidency
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To: neolib who wrote (65867)4/10/2018 11:56:51 AM
From: TimF  Read Replies (1) of 359969
 
Baumol's cost disease is fundamentally about the ratio of productivity changes in one sector vs other sectors

Yes. Its about how areas with flat or slowly increasing productivity show higher per unit real costs as they fall behind sectors with more rapidly increasing productivity.

Yes it would apply to sectors with declining productivity as well, but it doesn't explain the declining productivity. If you have declining productivity you have a problem beyond just cost disease.
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