Services today account for a major share of employment and national product in the U. S. with the employment share up from 57 percent immediately post-war to well over 70 percent today (if communications utilities and transportation are included). This transformation (which is also occurring with varying lags in the othereconomically advanced economies) is driven by a variety of forces: by changes in consumer demand by the rising demand for health and educational services by new ways in which businesses are organized and the increasing importance ofcertain functions (e. g. new demands for monitoring financing sales promotion and responding to regulatory agencies) and closely related by the continuing advances in electronic technology. Moreover these multiple transformations have been accompanied by changes in the way work is carried out (e. g. the dramatic increases in the utilization of white collar workers particularly professionals and managers and the employment of women and educated workers) and by shifts in the location of work and of the population (e. g. rising importance of key cities within the urban system and of suburbs generally). The role of services in modem capitalistic economies is not yet integrated into the body of economic theory although the need for such integration especially as regards theories ofgrowth market structure and pricing is critical. Some economists and sociologists however have since the days of Adam Smith dealt with certain aspects of the role of services.