Release date: July 22nd, 2019

Alex Tabarrok

Over the last two decades, the prices of consumer goods like toys and electronics have gone way down, but the prices of health care and education have gone up roughly 200%. Why? In this episode, economist Alex Tabarrok discusses his latest book, co-authored with Eric Heller, "Why are the Prices So D*mn High?," which blames rising costs on a phenomenon called the Baumol Effect.

Links

"Why are the Prices So D*mn High?" by Alex Tabarrok and Eric Heller

Alex's series of posts on Marginal Revolution summarizing the Baumol effect thesis

Alex's reply to comments/criticism of his thesis

Scott Alexander's post on rising prices and the Baumol effect: "Considerations on Cost Disease"

... and a follow-up post, "Highlights from the Comments on Cost Disease"

Scott's review of Alex's book

... and follow-up

Noah Smith's column on the Baumol effect

Edited by Brent Silk

Music by Miracles of Modern Science

Full Transcripts