The Growth of Service Industries

The Paradox of Exploding Costs and Persistent Demand

Edited by Thijs ten Raa, Utrecht University, the Netherlands and Ronald Schettkat, Professor of Economics (em.), Schumpeter School of Economics, University of Wuppertal, Germany

Problems arise if budgets for services are held constant whilst prices rise. Education, cultural activities and health services are under constant budgetary pressure. The authors argue that the price of commodities is linked to demand and price increases would therefore seem to threaten the very existence of these services. The paradox of these services is that in spite of their exploding costs, demand persists.

‘This stimulating book . . . is largely devoted to these two paradoxes, with a particular focus on the second one.’
– Jean Gadrey, The Service Industries Journal

”。的主要效益增长th of Service Industries is that it deals with one of the key issues in the modern economy. Policymakers struggle with the problematic question of whether to limit public service budgets as costs for their provision rise. Economists are perplexed by the interplay of slow service and fast goods productivity growth and wonder why the demand for services is so persistent. In that respect at least, The Growth of Service Industries is intended for use by both policymakers and economists and serves as a useful introduction to service productivity analysis.’
– Frederic Jallat, International Journal of Service Industry Management

‘This book includes a collection of articles that every student of the dynamics of growth of service industries in industrialized economies will want to read.’
– Rene Durand, Economic Systems Research