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The Division of Labor under Homogeneity: A Critique of Mises and Rothbard

Walter Block, Per Henrik Hansen and Peter G. Klein
The American Journal of Economics and Sociology
Vol. 66, No. 2 (Apr., 2007), pp. 457-464
Stable URL: http://www.jstor.org/stable/27739643
Page Count: 8
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The Division of Labor under Homogeneity: A Critique of Mises and Rothbard
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Abstract

Even the most passionate defenders of free trade, such as Mises and Rothbard, claim that trade cannot occur under conditions of strict homogeneity of land, labor, and capital. We show that specialization, trade, and the division of labor can emerge even when resources are initially homogenous, due to "natural heterogeneity," economies of scale, and learning.

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