William Baumol is a American economist born February 26th 1922. He is professor with the Université of New York since 1971 and preserves an affiliation of economist-researcher with the Université Princeton where he was professor between 1949 and 1992. Its prolific work relates to mainly the Job market and other factors which influence the economy, of which the Entrepreneuriat. He is also an important author in Histoire of the economic thinking.

Its tools for analysis are neo-classic.

Biography

William Baumol obtains her doctorate with the Université of London in 1949. From 1949 to 1992, he is professor of economy to the Université Princeton, where he is always economist-researcher and professor emeritus. In 1971 he becomes professor of economy to the Université of New York where he is also director of center C.V. Starr of economy applied. He was president of the American Economic Association, of the Association off Environmental and Resource Economists , of the Eastern Economic Association , and of the Atlantic Economic Society . He is member of the National Academy off Sciences.

He published more than 35 pounds, and more than 500 articles in specialized magazines.

Work

In an article published in 1967 in the American Economic Review ( Macroeconomics off Unbalanced Growth: The anatomy off urban crisis ), it formulates the first generalized version of what will become the Loi of Baumol or “disease of the costs”: in an economy divided into two sectors, an industrial sector where the Productivité grows continuously, and a sector of services where she does not believe (it had taken the example of the performing arts in a preceding article), the relative price of the production in this last sector grows indefinitely, which can involve either a reduction in the consumption of the goods or services produced by this sector, or an increase in her relative share in the total costs of consumption.

In the years 1970, it is interested in the role of the contractors in the activity and the economic growth, and it models this role within the framework of the neo-classic analysis. It exposes in 1982 (with Panzar and Willig) its theory of the contestable markets, where the structure of a market is given not only by the involved firms, but also by entering potential.

He is joint author (with James Tobin) of the Modèle Baumol-Tobin, which describes the request for currency of a household. The household must distribute its credits between saving (not very liquid) and currency (liquid) in order to carry out its transactions. The model describes an optimum between two desires: on the one hand, the saving is advantageous and not cash, which pushes the household to preserve the maximum of credits in the form of saving and to make a great number of small money withdrawals; in addition, each withdrawal has a cost (would be this only in time spent), which pushes it to make a small number of more important withdrawals.

Sources

• Biography of William Baumol (University of New York)
• Gunnar Eliasson and Magnus Henrekson, William J. Baumol: Entrepreneurial year Economist one the Economics off Entrepreneurship , in SSE/EFI Working Paper Series in Economics and Finance No 532, August 22nd, 2003

External bonds

• personal Page of William Baumol (University of New York)

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