Specialization, Information, and Growth: A Sequential Equilibrium Analysis
AbstractPricing 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. Copyright 1997 by Blackwell Publishing Ltd
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Development Economics.
Volume (Year): 1 (1997)
Issue (Month): 3 (October)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669
Other versions of this item:
- Ng, Y.K. & Yang, X., 1999. "Specialization, Information, and Growth: A Sequential Equilibrium Analysis," Papers 7, Chicago - Graduate School of Business.
- Yew-Kwang Ng & Xiaokai Yang, 1999. "Specialization, Information, and Growth: A Sequential Equilibrium Analysis," CID Working Papers 7, Center for International Development at Harvard University.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- D90 - Microeconomics - - Intertemporal Choice - - - General
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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