TY - JOUR
T1 - Specialization, information, and growth
T2 - A sequential equilibrium analysis
AU - Ng, Yew Kwang
AU - Yang, Xiaokai
PY - 1997
Y1 - 1997
N2 - Pricing costs and information problems are introduced into a framework with consumer-producers, economies of specialization, and transaction costs, to predict the endogenous and concurrent evolution of the division of labor and of information concerning economic organization acquired by society. Concurrent evolution generates endogenous growth based on the tradeoff between gains from information about the efficient pattern of the division of labor - which can be acquired via experiments with various patterns - and experimentation costs, which relate to the costs of discovering prices. The concept of Walras sequential equilibrium is developed to analyze the social learning process which is characterized by uncertainties in the direction of the evolution and by a certain trend of the evolutionary process.
AB - Pricing costs and information problems are introduced into a framework with consumer-producers, economies of specialization, and transaction costs, to predict the endogenous and concurrent evolution of the division of labor and of information concerning economic organization acquired by society. Concurrent evolution generates endogenous growth based on the tradeoff between gains from information about the efficient pattern of the division of labor - which can be acquired via experiments with various patterns - and experimentation costs, which relate to the costs of discovering prices. The concept of Walras sequential equilibrium is developed to analyze the social learning process which is characterized by uncertainties in the direction of the evolution and by a certain trend of the evolutionary process.
UR - http://www.scopus.com/inward/record.url?scp=0031405447&partnerID=8YFLogxK
U2 - 10.1111/1467-9361.00018
DO - 10.1111/1467-9361.00018
M3 - Article
AN - SCOPUS:0031405447
SN - 1363-6669
VL - 1
SP - 257
EP - 274
JO - Review of Development Economics
JF - Review of Development Economics
IS - 3
ER -