Uncertainty, Insurance and the Division of Labor
journal contributionposted on 05.06.2017 by Lio, Monchi
Any type of content formally published in an academic journal, usually following a peer-review process.
This paper provides a general equilibrium model to explore the relationships between transaction risks, transportation costs and division of labor. It is shown that insurance against transaction risks will change the extent of the market, the level of specialization, productivity and the level of division of labor.