Why are haircuts getting so expensive? (The Baumol Effect)

Matt needs a haircut, but he doesn't understand why it costs so much more than when he was a kid - even accounting for inflation. Lets see if we can figure it out.

Timeline:
00:00 - Introduction
02:49 - Baumol effect
03:31 - Musical interlude
03:56 - More Baumol effect
07:02 - Basalla-Samuelson effect
12:05 - Conclusion

Vox article: https://www.vox.com/new-money/2017/5/...

Stats NZ CPI data: https://www.stats.govt.nz/assets/Uplo...

Videos and thumbnail from Pexel: https://www.pexels.com/

Baumol and Bowen book: https://www.amazon.com/Performing-Eco...

The unmentioned (but implied) Baumol book with regards to this being a "cost disease": https://www.amazon.com/William-J.-Bau...

Orchestra wage information: https://adaptistration.com/2016/09/15...

Dornbusch piece: https://econpapers.repec.org/paper/nb...

Tweet on durable vs service prices:   / 1484579185163227136