The division of labor and the growth of government

被引:6
|
作者
Davis, LS [1 ]
机构
[1] Smith Coll, Northampton, MA 01060 USA
来源
关键词
division of labor; government; endogenous growth; transaction costs;
D O I
10.1016/S0165-1889(02)00022-2
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper develops a dynamic, general equilibrium model of specialization-driven growth in which private coordination costs are decreasing in public expenditure on physical and institutional infrastructure. The model provides an explicitly economic explanation of the secular rise of government. In addition, endogenous specialization decisions imply the existence of four development stages, characterized by distinct outcomes regarding the division of labor, the role of government and the return to capital. Growth is characterized by capital accumulation, market integration, the division of labor and the growth of government. The effectiveness of government plays a central role in determining whether an economy converges to a high or low level equilibrium. (C) 2002 Elsevier Science B.V. All rights reserved.
引用
收藏
页码:1217 / 1235
页数:19
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