If productivity increases more slowly for services than for manufactured goods then services suffer from Baumol's cost …; increase taxes (and hence tax distortions), cut spending or redistribute less. Under the assumptions underlying Baumol's cost …

debates often concentrate on cost- containment strategies and search for improved efficient resource allocation and equitable … progress, productivity, and cost: three important dimensions of the evolving modern healthcare systems. It provides a logical … integration of three strands of work linking healthcare cost to technology and research evidence on sectoral productivity …