In this theoretical investigation of the development through time of a pure labor economy, the author shifts the theory of long-term economic development away from the traditional framework based on capital accumulation to new foundations based on learning and technical progress. He gives a detailed analysis of the structural dynamics of prices and production, and the necessary mobility of employment. Institutional and social learning, know-how, and the diffusion of information emerge as the decisive factors accounting for the success and failure of industrial societies.
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"Pasinetti's careful and lucid analysis yields valuable insights into some of the most complex and seemingly intractable problems confronting industrialized nations in the 1990s." Christopher Brown, Journal of Economic Issues
"...every reader will benefit, both at an elementary and at a more advanced level." Bertram Schefold, Journal of Economic Literature
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