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There are three main claims in the paper: first, there is sufficient evidence for affirming that Ricardo adhered to Smith's productivity theory second, Ricardo's original demonstration of the comparative- advantage proposition is indeed compatible and complementary with respect to the latter;...
Persistent link: https://www.econbiz.de/10012900351
The so-called Ricardian trade model of contemporary economic textbooks is not a rational reconstruction of Ricardo's famous numerical example in chapter seven of the Principles. It differs from the latter in terms of the definition of the four numbers, relevant cost comparison, rule for...
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The recent demystification of David Ricardo’s famous numerical example in chapter 7 of the Principles bears important implications for the longstanding attribution debate on the law of comparative advantage. It has now become apparent that neither Ricardo nor Smith had anything to do with it....
Persistent link: https://www.econbiz.de/10013242190
The paper features a new interpretation of David Ricardo’s famous numerical example in chapter 7 of the Principles. It claims that the only purpose of the four numbers was to illustrate the proposition that the relative value of commodities produced in different countries is not determined by...
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