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How serious is medical care inflation in the USA? For many years, price indexes for medical care have outstripped the overall rate of inflation. Many economists, however, believe that economic statistics on medical care do not accurately measure medical care price changes because it is especially difficult to construct accurate price indexes for medical markets. Some research, reported in this volume, suggests that - contrary to the usual presumption of runaway medical inflation - prices for at least some medical care interventions are not rising rapidly and may even be falling.

The services industries comprise an enormous range of work, from burger-flipping to investment advice. Once seen as a stagnant sector with low productivity growth, the broad category now accounts for more than three-quarters of the US GDP. Triplett and Bosworth, fellows in the economic studies section at the Brookings Institution, analyze the funda