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The Economics of Services

Microfoundations, Development and Policy, Second Edition Jan Owen Jansson, Professor Emeritus, Linköping University, Sweden
Despite the fact that services have overtaken industry in terms of employment and GDP in developed countries, rigorous economic study of the service sector remains seriously neglected. The first edition of The Economics of Services initiated a redress of this oversight. Fully revised and updated, the second edition of this highly acclaimed textbook should be required complimentary reading to mainstream microeconomics textbooks for graduate students of economics and for advanced courses in labour, urban and regional economics, economic geography and economic history.
Extent: 336 pp
Hardback Price: $154.00 Web: $138.60
Publication Date: 2013
ISBN: 978 0 85793 217 4
Availability: In Stock
Paperback Price: $45.00 Web: $36.00
Publication Date: 2014
ISBN: 978 1 78254 084 7
Availability: In Stock
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  • Economics and Finance
  • Industrial Economics
  • Regional Economics
  • Services
  • Urban and Regional Studies
  • Regional Economics
Despite the fact that services have overtaken industry in terms of employment and GDP in developed countries, rigorous economic study of the service sector remains seriously neglected. The first edition of The Economics of Services initiated a redress of this oversight. Fully revised and updated, the second edition of this highly acclaimed textbook should be required complimentary reading to mainstream microeconomics textbooks for graduate students of economics and for advanced courses in labour, urban and regional economics, economic geography and economic history.

The text emphasizes the distinction between intermediate producer services and final consumer services. Many of the former are traded in global markets much like material goods in general, whilst the markets for consumer services are markedly local. This requires quite different micro-foundations in each case. Other key issues explored include the productivity development and quality of service measurements, as well as the key role of urbanization for service sector growth.

The critical issues for the future of the real economy, beyond the financial crisis, are also analyzed in depth. The author illustrates how a better understanding of the nature of the service economy is necessary for policy innovation, with a view to regenerating the welfare state.
Acclaim for the first edition:

‘This is a well-written, provocative book, featuring much new material, original data analyses and interesting insights. Despite the proliferation of books on various aspects of services, there is nothing quite like it around. In particular, examination of the challenges that the growth of services presents to conventional economics is very valuable.’
– Ian Miles, University of Manchester, UK

‘This is an intriguing book that contains many interesting ways of conceptualising service from the perspective of economics. It makes a number of important contributions to the academic literature. It is one of the very few books and it might even be the only book to be written by an economist on the economics of services – it is thus a pioneer work and is of value in that it attempts to bring together the work that economists have done on services.’
– John Bryson, University of Birmingham, UK
Contents:
Preface
Part I: Introduction
1. Purpose, Definitions and Present Structure of Service Consumption
2. Three Phases in the Development of Service Sector Employment
3. Key Service Characteristics for Economic Analysis

Part II: Micro Foundations
4. Adding the Spatial Aspect to Elementary Cost Theory
5. Service Production Costs
6. Service Distribution Costs
7. The Basic Trade-off and Derivation of the Supply-System Cost Function
8. Optimal Charges for Services with the Focus on the User Cost Component
9. Location Patterns and Competition

Part III: Driving Forces For and Against the Service Economy
10. Interpreting the Past Development by the Model of Unbalanced Productivity Growth
11. Urbanization and the Emergence Service Markets
12. Transport Motorization, Market Area Enlargement and Urban Sprawl 13. Towards a Self-Service Economy with Edge City Settlers as Prime Movers?

Part IV: Public Policy Towards Services
14. Policy for Promotion of Urban Amenities
15. The Overriding Problem of the Modern Welfare State
16. Trust in Economic Growth Cannot Replace Allocation Policy
17. Merit Goods Revisited
18. Towards Allocative Efficiency 1: Reformation of the Resource Allocation Over the Budget
19. Towards Allocative Efficiency 2: Marginal Cost Pricing and Differential Commodity Taxation
20. Towards X-efficiency in Public Service Provision
21. Summary of Policy Recommendations

References
Index