International Trade and Income Distribution
Xiaokai Yang and
Dingsheng Zhang
Working Papers from Chicago - Graduate School of Business
Abstract:
This paper applies the inframarginal analysis, which is a combination of marginal and total cost-benefit analysis, to investigate the relationship between division of labor, the extent of the market, productivity, and inequality of income distribution. The model with transaction costs and exogenous and endogenous comparative advantages shows that as transaction conditions are improved, the general equilibrium discontinuously jumps from autarky to partial division of labor with a dual structure, then to the complete division of labor where dual structure disappears. In this process different groups of individuals with different transaction conditions get involved in a certain level of division of labor at different stages of development.
Keywords: INCOME DISTRIBUTION; ECONOMIC DEVELOPMENT (search for similar items in EconPapers)
JEL-codes: D30 F10 O10 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (1)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: International Trade and Income Distribution (1999) 
Working Paper: International Trade and Income Distribution (1999) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:fth:chicbu:18
Access Statistics for this paper
More papers in Working Papers from Chicago - Graduate School of Business UNIVERSITY OF CHICAGO, H.G.B. ALEXANDER FOUNDATION GRADUATE SCHOOL OF BUSINESS, CHICAGO ILLINOIS 60637 U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().