Accounting for the wealth of Denmark: a case study of Smithian growth using the emergence of modern accounting in Danish dairying

Markus Lampe*, Paul Sharp

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

The idea of “Smithian growth” rests on a “natural” development out of agriculture through capital accumulation, and the division of labour. We confront these concepts with an “historical experiment” and the case of Danish agriculture in the nineteenth century. Specifically, we look at how accounting was used to promote specialization, ultimately in butter production, leading to the massive increases in productivity that Smith predicted. We also observe the emergence of Smithian “philosophers”. This ultimately led to the capital-intensive industrialization of Danish agriculture through butter factories, and general development. We argue that this establishes the historical relevance of Smith’s theories.

Original languageEnglish
JournalEuropean Journal of the History of Economic Thought
Volume26
Issue number4
Pages (from-to)659-697
ISSN0967-2567
DOIs
Publication statusPublished - 4. Jul 2019

Fingerprint

Wealth
Denmark
Agriculture
Productivity
Experiment
Capital accumulation
Division of labor
Industrialization
Factory

Keywords

  • Accounting
  • Adam Smith
  • B1
  • B3
  • bookkeeping
  • dairies
  • Denmark
  • M4
  • N5
  • Smithian growth

Cite this

@article{40db7880da0341efbcc11ef3c4360963,
title = "Accounting for the wealth of Denmark: a case study of Smithian growth using the emergence of modern accounting in Danish dairying",
abstract = "The idea of “Smithian growth” rests on a “natural” development out of agriculture through capital accumulation, and the division of labour. We confront these concepts with an “historical experiment” and the case of Danish agriculture in the nineteenth century. Specifically, we look at how accounting was used to promote specialization, ultimately in butter production, leading to the massive increases in productivity that Smith predicted. We also observe the emergence of Smithian “philosophers”. This ultimately led to the capital-intensive industrialization of Danish agriculture through butter factories, and general development. We argue that this establishes the historical relevance of Smith’s theories.",
keywords = "Accounting, Adam Smith, B1, B3, bookkeeping, dairies, Denmark, M4, N5, Smithian growth",
author = "Markus Lampe and Paul Sharp",
year = "2019",
month = "7",
day = "4",
doi = "10.1080/09672567.2019.1634751",
language = "English",
volume = "26",
pages = "659--697",
journal = "European Journal of the History of Economic Thought",
issn = "0967-2567",
publisher = "Heinemann",
number = "4",

}

Accounting for the wealth of Denmark : a case study of Smithian growth using the emergence of modern accounting in Danish dairying. / Lampe, Markus; Sharp, Paul.

In: European Journal of the History of Economic Thought, Vol. 26, No. 4, 04.07.2019, p. 659-697.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Accounting for the wealth of Denmark

T2 - a case study of Smithian growth using the emergence of modern accounting in Danish dairying

AU - Lampe, Markus

AU - Sharp, Paul

PY - 2019/7/4

Y1 - 2019/7/4

N2 - The idea of “Smithian growth” rests on a “natural” development out of agriculture through capital accumulation, and the division of labour. We confront these concepts with an “historical experiment” and the case of Danish agriculture in the nineteenth century. Specifically, we look at how accounting was used to promote specialization, ultimately in butter production, leading to the massive increases in productivity that Smith predicted. We also observe the emergence of Smithian “philosophers”. This ultimately led to the capital-intensive industrialization of Danish agriculture through butter factories, and general development. We argue that this establishes the historical relevance of Smith’s theories.

AB - The idea of “Smithian growth” rests on a “natural” development out of agriculture through capital accumulation, and the division of labour. We confront these concepts with an “historical experiment” and the case of Danish agriculture in the nineteenth century. Specifically, we look at how accounting was used to promote specialization, ultimately in butter production, leading to the massive increases in productivity that Smith predicted. We also observe the emergence of Smithian “philosophers”. This ultimately led to the capital-intensive industrialization of Danish agriculture through butter factories, and general development. We argue that this establishes the historical relevance of Smith’s theories.

KW - Accounting

KW - Adam Smith

KW - B1

KW - B3

KW - bookkeeping

KW - dairies

KW - Denmark

KW - M4

KW - N5

KW - Smithian growth

U2 - 10.1080/09672567.2019.1634751

DO - 10.1080/09672567.2019.1634751

M3 - Journal article

AN - SCOPUS:85068614842

VL - 26

SP - 659

EP - 697

JO - European Journal of the History of Economic Thought

JF - European Journal of the History of Economic Thought

SN - 0967-2567

IS - 4

ER -