The unintended consequences of increasing returns to scale in geographical economics

The Economics of Increasing Returns

Increasing returns is the source of some of the most powerful metaphors and intuitions in economics. Foremost among them are Adam Smith's statement that the division of labor is limited by the extent of the market, and his discussion of the relationship between scale and economies of specialization in a pin factory. There is a weakness, strictly an error, in Adam Smith's analysis. Two phenomena...

Journey into the unknown ? Economic consequences of factor market integration under increasing returns to scale

What are the dynamic consequences of comprehensive integration shocks? The answer to this question appears all but trivial. We set up a dynamic macroeconomic model of a small open economy where both capital and labor are mobile and there are increasing returns to scale at the aggregate level. The model features multiple equilibria as well as (local and global) indeterminacy. Hence, expectations...

Capacity Utilization under Increasing Returns to Scale

from linguistics to literature: a linguistic approach to the study of linguistic deviations in the turkish divan of shahriar

chapter i provides an overview of structural linguistics and touches upon the saussurean dichotomies with the final goal of exploring their relevance to the stylistic studies of literature. to provide evidence for the singificance of the study, chapter ii deals with the controversial issue of linguistics and literature, and presents opposing views which, at the same time, have been central to t...

Returns to Scale and Size in Agricultural Economics

Differences between the concepts of returns to size and returns to scale are systematically reexamined in this paper. Specifically, the relationship between returns to scale and size are examined through the use of the envelope theorem. A major conclusion of the paper is that the level of abstraction in applying a cost function derived from a homothetic technology within a relevant range of the...