American Economic Association Macroeconomics of Unbalanced Growth : The Anatomy of Urban Crisis
American Economic Association Macroeconomics of Unbalanced Growth : The Anatomy of Urban Crisis
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发表时间:
2007
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通讯作者:
W. Baumol
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作者:
W. Baumol
There are some economic forces so powerful that they constantly break through all barriers erected for their suppression. Such, for example, are the forces of supply and demand which have resisted alike medieval efforts to abolish usury and contemporary attempts to control prices. In this paper I discuss what I believe to be another such mechanism which has colored the past and seems likely to stamp its character on the future. It helps us to understand the prospective roles of a wide variety of economic services: municipal government, education, the performing arts, restaurants, and leisure time activity. I will argue that inherent in the technological structure of each of these activities are forces working almost unavoidably for progressive and cumulative increases in the real costs incurred in supplying them. As a consequence, efforts to offset these cost increases, while they may succeed temporarily, in the long run are merely palliatives which can have no significant effect on the underlying trends. The justification of a macroeconomic model should reside primarily in its ability to provide insights into the workings of observed phenomena. Its aggregation of diverse variables usually deny it the elegance and the rigor that are provided by microeconomic analysis at its best. Yet macro models have succeeded in explaining the structure of practical problems and in offering guidance for policy to a degree that has so far eluded the more painstaking modes of economic analysis. This article hopes to follow in the tradition-the structure of its basic model is rudimentary. Yet it can perhaps shed some light on a variety of economic problems of our generation.