• Baumol’s Disease: Growing Pains and Hidden Opportunities in the Service Economy

      ”Baumol’s Disease” is a term coined by American economist William Baumol In the mid-1960s, the concept was proposed when studying the costs and prices of artistic performances to describe the following phenomenon: the costs and prices of artistic performances have been rising, while the costs and prices of other commodities have shown a downward trend.   A large number of subsequent studies by Baumol himself and other economists have shown that this is not a special phenomenon, but a general rule that prevails in the service industry, and is true in both developed and developing countries. In fact, many economists, such as Philippe Agion, have dubbed Baumol’s disease “Baumor’s law,” alongside…

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