A thread through the archive
Essays tagged “Baumol effect”. Follow an idea across the archive.
Scott reviews comments on his vibecession post, exploring when it started, whether it's really about economics or culture, and notably finding that China experiences similar pessimism despite 5-10x income growth, suggesting vibes can be completely divorced from economic reality.
Scott Alexander follows up on his critique of a book about the Baumol effect, presenting data that challenges the book's claims about rising wages driving cost increases in education and healthcare.
Scott Alexander reviews a book attributing rising service costs to the Baumol effect, finding it convincing but raising some concerns about conflicting data and affordability issues.