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Domar serfdom model

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Through Factors of production and Returns to scale

Assumptions and hypothesis

In his model of serfdom, Domar assumes the following:

  • Land and labor are the only factors of production (no capital or management required) (Domar, 2)
  • Land is of uniform quality and location is a non-factor
  • Constant returns in labor (marginal product of labor is constant, and nearly equal to the average product of labor)

In addition, Domar asserts that there are 3 elements of agricultural structure relevant in his model:

  1. Abundant free land
  2. Abundant free labor (free peasants)
  3. Large-scale agriculture (non-working landowners)

Domar claims that any 2 of these 3 elements can exist cohesively, but never can all 3 elements exist simultaneously in any particular situation. Dependent on which elements exist cohesively, one will see differing types of societies. (Domar, 5) The Domar Serfdom Model characterizes bond labor as being a product of human choice and creation. Taking Q=F(Land, Labor), stated in words as production being a function of land and labor, and under the assumptions that production requires only land and labor, production demonstrates constant returns to scale, and there is an abundance of free land, then free-wage labor will not exist. Additionally, production units will require bond labor. It is this attribution of bond labor resulting from human choice that separates Domar's model from models that attribute slavery to a product of nature, such as Staple's Thesis. (Domar, 5)

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