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The Division of Labor Under Homogeneity: A Critique of Mises and Rothbard
Author(s) -
Block Walter,
Hansen Per Henrik,
Klein Peter G.
Publication year - 2007
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.2007.00520.x
Subject(s) - economics , division of labour , homogeneity (statistics) , division (mathematics) , von mises yield criterion , neoclassical economics , labour economics , economic geography , market economy , engineering , mathematics , arithmetic , structural engineering , finite element method , statistics
A bstract . Even the most passionate defenders of free trade, such as Mises and Rothbard, claim that trade cannot occur under conditions of strict homogeneity of land, labor, and capital. We show that specialization, trade, and the division of labor can emerge even when resources are initially homogenous, due to “natural heterogeneity,” economies of scale, and learning.