In Chapter II, Book II, Wealth of Nations, Smith develops the distinction between the ‘gross’ and ‘neat’ revenue of a country. Taking the rent of an individual estate as the point of reference, Smith generalizes the distinction between gross and net, migrating from the sphere of an individual estate into that of a whole country. The ‘value of the annual produce’ of any country also holds the...
The position of modern economic theory towards the analysis of competition carried out by Adam Smith in Chapter VII of the Wealth of Nations is somewhat paradoxical. On the one hand, Smith’s analysis of competition is generally regarded as one of his fundamental contributions, not only to our more general view of the functioning of a market economy, but also to economic analysis in the strict...
