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What is the ‘cost disease’ identified by William Baumol and why is it important to understanding...

What is the ‘cost disease’ identified by William Baumol and why is it important to understanding cultural economics?

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Bauman cost disease is nothing but a pattern that tells how increase in wages doesn't effect the productivity of labour when compared to that of other jobs. This increases the cost without having any beneficial effects. It is indeed important to that of cultural economics because of the fact that it tells about the group behaviour in the jobs which results in this cost disease and with this, the effect of this could be minimised all in all.

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