Problems with development economics.(Can labor-capital models predict the responses of agrarian societies to development?, part I)

From: The American Journal of Economics and Sociology | Date: October 1, 1995| Author: Smiley, David H. | Copyright information

Development efforts and economics have relied upon two-factor, capital and labor neoclassical economic models. Failures have occurred when they were applied to agrarian societies where the ownership of land rent dictates particular institutional forms that engender resistance to development. It is argued that there is a need for a new three-factor development theory which explicitly models land and its rent. Ideas of Smith, Ricardo, George and Samuelson are assembled as a basis for a computer...

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