William J. Baumol (economist)

William J. Baumol was an American economist known for his contributions to understanding economic growth, entrepreneurship, and the dynamics of industries. He is best recognized for the "Baumol's Cost Disease" concept, which explains why costs in certain sectors, like healthcare and education, rise faster than in others due to their labor intensity and slow productivity growth. Baumol also researched contestable markets, highlighting how competition can exist even with few firms if there are no barriers to entry. His work has influenced both economic theory and policy, emphasizing the importance of innovation in driving economic progress.