In an article explaining why he did not believe in this concept, Tyler Cowen argued that the sector analyzed by this concept's formulators was not "asymptotical y stagnant,"  because both process and product innovations can increase consumption.
Although the original study that led to the formulation of this concept predicted a growing  expenditure gap, the work of Marianne Felton showed that this gap did not materialize in the 1990s. A  2006 macroeconomic analysis of this phenomenon by Wil iam Nordhaus demonstrated that it held  across multiple industries. In an article explaining why he did not believe in this concept, Tyler Cowen argued that the sector analyzed by this concept's formulators was not "asymptotical y stagnant,"  because both process and product innovations can increase consumption. This concept was original y  characterized by its namesake and Wil iam Bowen in the work Performing Arts: The Economic Dilemma, which noted that the number of people and the amount of time to perform a Beethoven string quartet  has stayed invariant for two hundred years. For 10 points, identify this phenomenon in which salaries for jobs that do not experience productivity gains due to technology or other factors rise anyway along with salaries for jobs that do.
Although the original study that led to the formulation of this concept predicted a growing  expenditure gap, the work of Marianne Felton showed that this gap did not materialize in the 1990s.
Baumol effect or “cost disease”