Morales Meoqui, Jorge (2010): Smith's and Ricardo's common logic of trade.
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Ricardo essentially adhered to the logic of trade that Smith formulated in the Wealth of Nations. The contrary notion that they had opposing logics of trade is the result of an inaccurate interpretation of Ricardo’s numerical demonstration of the comparative-advantage proposition in chapter seven of the Principles. A deeper understanding of this numerical demonstration also leads to a partial refutation of the familiar contraposition between the comparative-advantage proposition and the absolute cost advantage theory of trade.
|Item Type:||MPRA Paper|
|Original Title:||Smith's and Ricardo's common logic of trade|
|Keywords:||comparative advantage, absolute cost advantage, Ricardian model, international trade theory, free trade|
|Subjects:||B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B12 - Classical (includes Adam Smith)|
|Depositing User:||Jorge Morales Meoqui|
|Date Deposited:||02. Dec 2010 10:02|
|Last Modified:||20. Feb 2013 22:41|
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Available Versions of this Item
Smith's and Ricardo's common logic of trade. (deposited 02. Dec 2010 10:02)
- On the complementary nature of Ricardo’s comparative advantage and Smith’s productivity theory of trade. (deposited 12. Jun 2012 15:30)