This paper develops a formal model with transaction costs and economies of specialisation to address the size of the firm and the level of social division of labour. It is shown that the increase of the level of social division of labour and the decline of firm size may concur, and that the size...

We develop a formal model with transaction costs and economies of labor specialization to address the firm size and the level of social division of labor. We show that the decline of firm size and the increase of the level of social division of labor may concur. We also demonstrate that an...

A general equilibrium model with increasing return to labour specialisation and economies of transaction agglomeration is developed to address the residential land-rent escalation associated with the urbanisation process, which is in turn endogenised as a result of the evolution of the division...