For decades, the costs of education and health care have climbed far faster than other goods. The Baumol Effect is an oft-overlooked and underappreciated economic theory that explains why. So we ...

Varun Ganapathi, Ph.D. is co-founder & CTO at AKASA. Varun's two previous AI companies were acquired by Google and Udacity. For anyone who isn’t an economist, it can be challenging to make sense of ...

There is a maxim in economics that increases in worker productivity tend to result in higher wages for workers. It makes some intuitive sense — if workers produce more goods per hour, thanks to a new ...

The Baumol-Tobin Cash Management Model of money demand serves as a vehicle with which to demonstrate how to use Microsoft Excel to solve optimization problems and do comparative statics analysis. The ...