Baumol’s ‘cost disease’ applies to labour-intensive industries

William Baumol will not likely win the Nobel Prize in Economics next month (the award will be announced Monday, Oct. 10). That’s a shame. Bill, all of 94, has written 40 books, seven while he was over 80, together with some 500 articles. While volume alone should not sway the Nobel Committee, he has made path-breaking contributions to many areas of economics.His most famous, the “Baumol cost disease,” describes the plight of the performing arts. He and a colleague pointed out that the performance of Mozart’s String quintet in G Minor (K. 515) needs the same five musicians—two violinists, two

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