Recently I asked about cost disease at the Austin, TX meetup and someone responded "Isn't it just increasing labor costs via the Baumol effect?" and I said "huh?" The next day a friend on facebook linked to Marginal Revolution (MR) discussing the Baumol effect. Next thing I know I'm nerd-sniped.
Turns out Alex Tabarrok at MR just published a free book with the thesis, "Cost disease is mostly just the Baumol effect, which btw isn't a disease and is actually good in a way."
How does this fit in with Scott Alexander's original posts on cost disease? Well here's an imaginary dialogue to demonstrate how I think things went (MR sometimes means Alex Tabarrok and... (read 233 more words →)
Only barely related, but Grassmann numbers are hilariously weird. Among other properties, their square is always zero (though they’re generally non-zero).