Abstract
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 model to demonstrate this benefit, which is referred to as the continuity-in-capital-formation benefit of the division of labor.
| Original language | English |
|---|---|
| Pages (from-to) | 310 - 318 |
| Number of pages | 9 |
| Journal | Eastern Economic Journal |
| Volume | 38 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2012 |