This research monograph provides systematic and comprehensive materials for applying inframarginal analysis to study a wide range of economic phenomena. The analysis is based on a new overarching framework to resurrect the classical notion of division of labor and specialization, which is an...

This paper develops a general equilibrium model to simultaneously endogenize the level of division of labor, the extent of the market, the degree of inequality of income distribution, and aggregate productivity. It shows that good capitalism with free markets for all goods including government...