Preface -- Contents -- Part 1 Introduction -- CHAPTER 1 DIVISION OF LABOR AND CORNER SOLUTIONS IN POSITIVE TRADE THEORY -- 1. Marginalism -- 2. Division of Labor vs. Theory of Distribution -- 3. Inframarginal Economics -- 4. An Inframarginal Approach to Trade Theory -- References -- Part 2 Origins of Inframarginal Applications to Trade Theory -- CHAPTER 2 ECONOMICS AND BIOLOGY: SPECIALIZATION AND SPECIATION* -- Summary -- References -- CHAPTER 3 SUBSTITUTION AND DIVISION OF LABOUR* -- 1. Introduction -- 2. Indirect Production Functions -- 3. Selection and Income Distribution -- 4. Conclusion -- Acknowledgments -- References -- CHAPTER 4 TRADE AND INSURANCE WITH MORAL HAZARD* -- 1. Introduction -- 2. Individual Risk, Exclusive Insurance -- 3. Individual Risk, Unconstrained Insurance -- 4. Aggregate Risk, Exclusive Insurance -- 5. Concluding comments -- Appendix A -- Appendix B -- Appendix C -- References -- CHAPTER 5 TRADE AND INSURANCE WITH IMPERFECTLY OBSERVED OUTCOMES* -- 1. Introduction -- 2. The Model -- 3. Unobserved Outcomes -- 4. Costly Observation -- 5. Concluding Remarks -- References -- Part 3 Exogenous Comparative Advantage: Corner Solutions in the Heckscher-Ohlin and Ricardian Models of Trade -- CHAPTER 6 AN INFRAMARGINAL ANALYSIS OF THE RICARDIAN MODEL* -- 1. Introduction -- 2. A Simple 2x2 Ricardian Model and Inframarginal Analysis -- 3. A 2x2 Ricardian Model with Tariff -- 4. A 3x2 Ricardian Model -- 5. Conclusion -- References -- CHAPTER 7 A RICARDIAN MODEL WITH ENDOGENOUS COMPARATIVE ADVANTAGE AND ENDOGENOUS TRADE POLICY REGIMES* -- 1. Introduction -- 2. A General Equilibrium Ricardian Model -- 3. Endogenous Trade Policy Regime -- 4. Conclusion -- References -- CHAPTER 8 A GENERAL-EQUILIBRIUM RE-APPRAISAL OF THE STOLPER-SAMUELSON THEOREM* -- 1. Introduction -- 2. The General-Equilibrium HO Model with Differences in Technology.

3. A Re-Appraisal of the Stolper-Samuelson Theorem -- 4. Conclusion -- References -- Part 4 Division of Labor in Models of Trade with Economies of Scale -- CHAPTER 9 A RICARDO MODEL WITH ECONOMIES OF SCALE* -- Introduction -- 1. Some Basic Properties and the Basic Graph -- 2. Existence of Solutions -- 3. Boundaries of the Region of Equilibria -- 4. Filling in -- 5. Non-specialized Equilibria -- 6. The General Shape of the Region and a Special Case -- 7. General Properties of the Model -- 8. Summary -- Appendix 1 -- Appendix 2 -- References -- CHAPTER 10 PATTERN OF TRADE AND ECONOMIC DEVELOPMENT IN A MODEL OF MONOPOLISTIC COMPETITION* -- 1. Introduction -- 2. The Model and Local Equilibria and Marginal Comparative Statics in Various Trade Structures -- 3. General Equilibrium and Inframarginal Comparative Statics -- 4. Comparison with the Models with CRS -- 5. Concluding Remarks -- References -- CHAPTER 11 MARKET LED INDUSTRIALIZATION AND GLOBALIZATION* -- 1. Introduction -- 2. An Extended Murphy-Shleifer-Vishny Model of Industrialization -- 3. Extension and Applications -- 4. Concluding Remarks -- References -- Part 5 Economies of Specialization and Endogenous Comparative Advantage -- CHAPTER 12 SPECIALIZATION AND PRODUCT DIVERSITY* -- 1. A Model of Consumers/Producers -- 2. Individual Decisions and Equilibrium -- 3. Concluding Remarks -- References -- CHAPTER 13 ENDOGENOUS VS. EXOGENOUS COMPARATIVE ADVANTAGE AND ECONOMIES OF SPECIALIZATION VS. ECONOMIES OF SCALE* -- 1. Introduction -- 2. A System of Production for a Consumer-producer and Transaction Costs -- 3. Equilibrium and Its Comparative Statics -- 4. A Comparison Between Our Model and a Neoclassical Trade Model -- 5. A Comparison Between Our Model and an Extended Dixit-Stiglitz Model -- 6. Concluding Remarks -- Appendix -- Acknowledgements -- References.

CHAPTER 14 A NEW THEORY OF DEMAND AND SUPPLY AND EMERGENCE OF INTERNATIONAL TRADE FROM DOMESTIC TRADE* -- 1. Introduction -- 2. The Model -- 3. The Equilibrium Level of Division of Labor -- 4. A Modified Version with the CES Utility Function -- 5. Implications for Microeconomics, Trade Theory and Development Economics -- 6. Concluding Remarks -- References -- CHAPTER 15 WALRASIAN EQUILIBRIUM COMPUTATION, NETWORK FORMATION, AND THE WEN THEOREM* -- 1. Introduction -- 2. Wen's Result and a Counter Example -- 3. Revised Theorems -- 4. Equilibrium Computation and Network Formation -- 5. A Simple Example -- 6. Conclusion -- References -- Part 6 Inframarginal Analysis of Trade Policy, Dual Structures, and Globalization -- CHAPTER 16 GLOBALIZATION, DUAL ECONOMY, AND ECONOMIC DEVELOPMENT* -- 1. Introduction -- 2. A Ricardian Model with Endogenous and Exogenous Comparative Advantages -- 3. General Equilibrium and Its Inframarginal Comparative Statics -- 4. Other Combinations of Endogenous and Exogenous Comparative Advantages -- 5. Conclusion -- References -- CHAPTER 17 ENDOGENOUS STRUCTURE OF THE DIVISION OF LABOR, ENDOGENOUS TRADE POLICY REGIME, AND A DUAL STRUCTURE IN ECONOMIC DEVELOPMENT* -- 1. Introduction -- 2. A General Equilibrium Ricardian Model -- 3. Endogenous Trade Policy Regime -- 4. Conclusion -- References -- Part 7 Dynamic Inframarginal Analysis of Trade Models with Endogenous Comparative Advantage -- CHAPTER 18 A MICROECONOMIC MECHANISM FOR ECONOMIC GROWTH* -- 1. Introduction -- 2. A Dynamic Model -- 3. Individual Decisions and Dynamic Equilibrium -- 4. Conclusion -- Appendix A -- Appendix B -- References -- CHAPTER 19 SPECIALIZATION AND A NEW APPROACH TO ECONOMIC ORGANIZATION AND GROWTH* -- 1. Model -- 2. Economic Growth -- 3. Money -- References -- CHAPTER 20 SPECIALIZATION, INFORMATION, AND GROWTH: A SEQUENTIAL EQUILIBRIUM ANALYSIS*.

1. Introduction -- 2. Efficient Division of Labor in a Walrasian Regime -- 3. Costs of Acquiring Information about Efficient Division of Labor -- 4. Information Costs and Endogenous Evolution of the Division of Labor -- 5. Concluding Remarks -- References -- CHAPTER 21 EVOLUTION IN DIVISION OF LABOR AND MACROECONOMIC POLICIES* -- 1. Introduction -- 2. The Model -- 3. Alternative Methods of Financing Government Expenditure -- 4. Comparison of the Two Regimes -- 5. Conclusion -- References -- CHAPTER 22 DIVISION OF LABOR, MONEY AND ECONOMIC PROGRESS* -- 1. Introduction -- 2. The Model Setting -- 3. The General Equilibrium -- 4. The Use of Money Substitutes -- 5. Conclusion -- Appendix Proof for Proposition 1 (1) -- References -- Index.