A Benefit from the Division of Labor that Adam Smith Missed

This paper argues that there is an important benefit from the division of labor that Adam Smith failed to mention, that is, the division of labor shortens the time required for capital formation and makes continuous roundabout production possible. The paper presents a simple general equilibrium model to demonstrate this benefit, which is referred to as the â€œvalue of timeâ€ benefit of the division of labor.

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Year of publication:	2010-05
Authors:	Cheng, Wenli
Institutions:	Department of Econometrics and Business Statistics, Monash Business School
Subject:	the division of labor \| time structure of production \| capital formation \| transaction costs

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Extent:	application/pdf
Series:	Monash Economics Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 16-10 19 pages
Classification:	D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; O10 - Economic Development. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008492307