• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Øvrige samlinger
  • Publikasjoner fra CRIStin - NTNU
  • View Item
  •   Home
  • Øvrige samlinger
  • Publikasjoner fra CRIStin - NTNU
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Cost disease in defense and public administration: Baumol and politics

Borge, Lars-Erik; Hove, Kjetil Hatlebakk; Lillekvelland, Tobias; Tovmo, Per
Journal article, Peer reviewed
Accepted version
Thumbnail
View/Open
1588284.pdf (1.667Mb)
URI
http://hdl.handle.net/11250/2508296
Date
2018
Metadata
Show full item record
Collections
  • Institutt for samfunnsøkonomi [769]
  • Publikasjoner fra CRIStin - NTNU [26591]
Original version
Public Choice. 2018, 175 (1-2), 1-18.   10.1007/s11127-018-0510-z
Abstract
William Baumol’s model predicts a steady increase in relative public sector prices (or costs) because of the combination of slow productivity growth and wage growth similar to sectors wherein productivity is growing more quickly. In this paper, we extend the Baumol model with political variables and analyze price growth in defense and public administration using Norwegian data. We find strong support for the mechanism of the Baumol model since manufacturing productivity is the most important determinant of relative public-sector prices. Greater political fragmentation has also contributed to the price growth, but its quantitative effect is smaller than that of manufacturing productivity. An analysis of a labor-intensive private service (restaurants and cafes) supports the broader relevance of the Baumol mechanism and the validity of the estimated effect of political fragmentation on the two sectors considered herein.
Publisher
Springer Verlag
Journal
Public Choice

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit