Economic Development and the Division of Production between Households and Markets
A model is presented in which scale economies give market production a cost advantage over household production, but in which market production is limited by the extent of the market. The author views the production process as a series of stages, each further refining and specializing the product of the previous stage. As processing proceeds, the number of intermediate goods increases and markets thin out. Firms specialize in the early stages of production and households in the later stages. As an economy grows, production shifts out of households and into the market. Several other changes associated with economic development are also accounted for. Copyright 1990 by University of Chicago Press.
When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:98:y:1990:i:5:p:965-82. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.