Author： van Reenen P
Publisher： Emerald Group Publishing Ltd
ISSN： 1363-951X
Source： Policing: An International Journal of Police Strategies and Management, Vol.22, Iss.2, 1999-02, pp. : 133-152
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Abstract
The American economist Baumol discovered that some services and products are incompatible with cost reduction. A dance production, for example, depends so heavily on people that costs can hardly be reduced and become more and more "expensive" without producing more. This phenomenon is known as the "cost disease" of Baumol. This article explores to what extent this cost disease is applicable to the police. The preliminary conclusion is that, although requiring some amendment, it is indeed applicable. However, the disease is caused not only by the actual impossibility of saving costs, but also by normative restrictions. In particular, the monopoly position of the police itself plays an important role.
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