Ricardo's comparative advantage vs. “Ricardian” model

Morales Meoqui, Jorge (2010): Ricardo's comparative advantage vs. “Ricardian” model.

Abstract

The so-called Ricardian model of contemporary economic textbooks differs significantly from the famous numerical example included in chapter seven of the Principles. The difference is not merely with respect to the definition of the four numbers, but also in terms of underlying proposition, logical construction, assumptions and theoretical implications. Therefore, the textbook model should no longer be considered as part of Ricardo’s international trade theory, nor taken as basis for understanding Ricardo’s superior demonstration of comparative advantage in the Principles.

• Item Type: MPRA Paper
• Language: English
• Keywords: comparative advantage; Ricardian model; CULC 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); F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade

References

Buchanan, J. M., & Yoon, Y. J. (2002). Globalization as Framed by the Two Logics of Trade. The Independent Review , 6 (3), 399-405.

Caves, R. E., Frankel, J. A., & Jones, R. W. (1993). World Trade And Payments: An Introduction (6th Edition ed.). New York, New York: Harper Collins.

Dunkley, G. (2004). Free Trade: Myth, Reality and Alternatives. London: Zed Books.

Eaton, J., & Kortum, S. (2002). Technology, Geography, and Trade. Econometrica , 70 (5), S. 1741-1779.

Haberler, G. v. (1936). The Theory of International Trade, with its Application to Commercial Policy. London: William Hodge.

Hollander, S. (1979). The Economics of David Ricardo. London: Heinemann.

Kenen, P. B. (1994). The International Economy (3rd Edition ed.). Cambridge: Cambridge University Press.

Krugman, P. R., & Obstfeld, M. (2000). International Economics. Reading (Mass.): Addison- Wesley Publishing Company.

Morales Meoqui, J. (2011). Comparative Advantage and the Labor Theory of Value. History of Political Economy , 43 (4), 743-763.

Myint, H. (1977). Adam Smith's Theory of International Trade in the Perspective of Economic Development. Economica , 44 (175), 231-248.

Ricardo, D. (2004). The Works and Correspondence of David Ricardo. (P. Sraffa, Ed.) Indianapolis: Liberty Fund, Inc.

Ruffin, R. J. (2002). David Ricardo's Discovery of the Comparative Advantage. History of Political Economy , 34 (4), 727-748.

Ruffin, R. J. (2005). Debunking a Myth: Torrens on Comparative Advantage. History of Political Economy , 37 (4), S. 711-722.

Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations (The Glasgow Edition of the Works and Correspondence of Adam Smith ed., Vol. II). (R. H. Campbell, & A. S. Skinner, Eds.) Indianapolis: LibertyClassics.

Sraffa, P. (1930). An Alleged Correction of Ricardo. The Quarterly Journal of Economics , 44 (3), 539-544.

Viner, J. (1937). Studies in the Theory of International Trade. London: Allen & Unwin.