Factor Accumulation and Trade: Dynamic Comparative Advantage with Endogenous Physical and Human Capital
Author(s)
Bond, Eric W.; Trask, Kathleen; Wang, Ping
Abstract
This article develops a framework for communication between the Marxian and neoclassical paradigms. Both involve political ideologies, neoclassicals being broadly-defined liberals. But similarities exist: both see individual and collective interests in conflict, while a simple description of Marxian socialism approaches the liberals’ idealized vision of capitalism in some key ways. In addition to the neoclassical natural/technical constraints, Marxism sees a capitalist societal constraint. The group versus individual conflict then appears as between class and individual interests. Further, unlike in liberalism, technology and individual wants are endogenous. Even capitalism reflects a balance of conflicting dynamics forces toward persistence and dissolution.
