Abstract

In this paper, a simplified model is developed to analyze the main characteristics
of the accumulation process based on Adam Smith’s view. The model is constructed on the
basis of a single product and emphasizes the relation between productivity, determined by
the division of labor, the proportion of the economic surplus invested in productive labor,
the natural wage and the profit rate, during the phase of progress and in the stationary
state of the economies. Additionally, a process is suggested for determining the natural wage
based on the elements stressed by the classical economists.

JEL Classification: B12; O41.