increasing returns is part of the explanation of V's law. after all, the bit about a larger market encouraging division of labor and productivity involves increasing returns to scale.
On 9/23/07, Michael Perelman <[EMAIL PROTECTED]> wrote: > Verdoorn was a Dutch economist who got the idea from Tinbergen's data. > Kaldor picked it up & then said that Arrow called it Verdoorn's Law > when writing about learning by doing. Arrow did not call it a law. > > The literature on the law is mixed although it worked pretty well until > 1970. The story is mixed up with lots of other factors, including > increasing returns. > -- > Michael Perelman > Economics Department > California State University > Chico, CA 95929 > > Tel. 530-898-5321 > E-Mail michael at ecst.csuchico.edu > michaelperelman.wordpress.com > -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
