3min chapter

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Rationally Speaking #236 - Alex Tabarrok on "Why are the Prices So D*mn High?"

Rationally Speaking Podcast

CHAPTER

Is It All the BOML Effect?

The BOML effect is the idea that we are purchasing more of these goods even as their prices go up. So I think it's true we could lower prices in healthcare if we did a bunch of things but until you solve the fundamental productivity problem you would still continue to see this long run increase in relative price over time. That's kind of what I think is going on and maybe I'm a little bit part of the BOML too.

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