My PSST Papers
By Arnold Kling
The Adam Smith Institute has just released a paper of mine on patterns of sustainable specialization and trade. An excerpt:
The PSST approach drops the assumption that production technology is known. Instead, the Smithian division of labour and Ricardian comparative advantage are constantly being developed and improved. Entrepreneurs, through a process of trial and error, figure out how best to configure production. In this process of ongoing discovery, there can be periods in which workers are unemployed, while the market mechanism tries to figure out how to utilize them.
For your convenience, I have put on my web site three academic papers, all pdfs: