Wednesday, June 12, 2019

Gains in Government Productivity?

Alex Tabarrok at Marginal Revolution has a series of posts on the increased cost of higher education and health services in the US over the past years.  On first reading they're convincing. 

Briefly it's Baumol's  disease--it's hard to raise productivity in service industries because it requires people's time--the time for musicians to play a live performance, a doctor to examine a patient, a surgeon to do an operation, etc.

So how about government?  That's a question I'll try to get back to.

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