Must the growth rate decline? Baumol's unbalanced growth revisited

Oulton, Nicholas

doi:10.1093/oep/53.4.605

Cited by 152 publications

(93 citation statements)

References 16 publications

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“…This growth pessimism has always been more controversial than the proposition of the cost and price disease derived from Baumol's model. Oulton (2001), for instance, was able to show that if the tertiary sector produces intermediate services instead of services to the final consumer, the aggregate productivity (and hence the GDP) growth rate may rise over time rather than fall. Sasaki (2007), however, vindicated Baumol's result of a tendency for the economy to stagnate, showing that the GDP growth rate will decline in the long run as long as some services are produced for final demand.…”

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confidence: 99%

‘Baumol’s diseases’: The case of Switzerland

Hartwig

2010

Swiss J Economics Statistics

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Summary Nordhaus (2008) has developed a testing strategy for what he calls ‘Baumol’s diseases’, by which name he designates a number of by-products of structural change that are unwanted from an economic policy perspective. He finds that the U.S. economy is strongly affected by the ‘diseases’. This paper applies Nordhaus’s testing methodology to Swiss data. The results suggest that — unlike the U.S. — Switzerland is not affected by the most serious of the ‘diseases’, namely the negative impact of structural change on economic growth.

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confidence: 99%

‘Baumol’s diseases’: The case of Switzerland

Hartwig

2010

Swiss J Economics Statistics

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“…The effects of KIBS on cooperating firms has been consistently described as positive, whereby the use of KIBS results in a higher sectoral productivity (Baker, 2007;Camacho and Rodriguez, 2007;Kox and Rubalcaba, 2007b;Oulton, 2001), as well as innovativeness and growth Evangelista et al (2013). On a company level, KIBS use results in the direct effects of higher R&D output and human capital stock, as well as indirect effects that include the adaption of new technologies and the diffusion of innovation (Miozzo and Soete, (2001).…”

Section: Literature Reviewmentioning

confidence: 99%

Knowledge-Intensive Business Services as Credence Goods—a Demand-Side Approach

Feser

Proeger

2015

J Knowl Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: Knowledge-intensive business services (KIBS) constitute a major source of innovative knowledge for small-and medium-sized enterprises. In regional innovation systems, KIBS play a crucial role in distributing innovations and improving the region's overall innovative capacities. While the specific properties and effects on client firms and sectors have been comprehensively discussed, the internal perspective of client firms, i.e. the processes and problems in selecting, using, evaluating and recommending KIBS, has been neglected to date. Using a qualitative approach, we describe the internal mechanisms and problems of SMEs cooperating with various KIBS and discuss the implications for regional innovation systems from a policy-making perspective. We find that all stages of cooperation of SMEs and KIBS are characterized by strong information asymmetries, distrust and uncertainty about the effects of using external know-how, which yields the interpretation that SMEs perceive KIBS as credence goods. While informal networks are used to reduce information barriers, they regularly prove counterproductive by disseminating worst-case examples. Regional policy aiming at developing instruments for fostering innovative cooperation could thus strengthen formal networks that primarily create trust between KIBS and SMEs to systematically reduce mutual suspicions and information asymmetries. Terms of use: Documents in

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“…For personal use only, all rights reserved. businesses, they can significantly contribute to productivity growth of manufacturing as well as the overall economy (e.g., Fixler and Siegel 1999, Oulton 2001, Wirtz and Ehret 2009. Indeed, studies show that business services used by manufacturing firms are the most important driver of productivity growth in developed economies, followed by the use of IT (Triplett and Bosworth 2003).…”

Section: Mid 90smentioning

confidence: 99%

Division of Labor between Firms: Business Services, Non-Ownership-Value and the Rise of the Service Economy

Ehret

Wirtz

2010

Service Science

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Why have services grown into the dominant sector of developed economies? Our analysis of macroeconomic data shows that business services make the strongest contribution to the rise of the service sector. We integrate three related economic theories of the firm to explain business services in shaping firms, industries and economies. Business service providers relieve their clients from the costs of asset ownership (Property Rights Theory), unlock management capacity (Resource-Based View) and support their clients in navigating their firm's boundaries towards their most valuable business opportunities (Entrepreneurial Theory of the Firm). We show how these theories build on the non-ownership value provided by business services that result from sound division of labor between organizations. We highlight three areas that call for research and provide opportunities for service science: (1) Systematic design of business-models for fostering service performance, (2) the transformation of high-tech-products into service-hubs, and (3) service-driven innovation and the transformation of R&D into a service industry. [Service Science, ISSN 2164-3962 (print), ISSN 2164-3970 (online), was published by Services Science Global (SSG) from 2009 to 2011 as issues under ISBN 978-1-4276-2090-3.]

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Must the growth rate decline? Baumol's unbalanced growth revisited

Cited by 152 publications

References 16 publications

‘Baumol’s diseases’: The case of Switzerland

‘Baumol’s diseases’: The case of Switzerland

Knowledge-Intensive Business Services as Credence Goods—a Demand-Side Approach

Division of Labor between Firms: Business Services, Non-Ownership-Value and the Rise of the Service Economy

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