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

Rationally Speaking Podcast

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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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