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A Ricardo-Sraffa Paradigm Comparing Gains from Trade in Inputs and Finished Goods

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  • Paul A. Samuelson

Abstract

Here is how the 1817 Ricardo comparative advantage trade benefit analysis has to be modified to take account of post-1960 Sraffian benefits from capital-using technologies. By bringing J. S. Mill's demand model up to date in terms of its implicit geometric-mean money-metric utility, specific measurements for real net national product are calculated to partition sources of welfare gains (from output enhancements and taste-preference accommodations) in scenarios of (1) trade between equals, (2) trade between poor and rich nations, and (3) for biased inventions that enable a poor country to take over production of items in which formerly the rich place enjoyed comparative advantage. History of economic doctrine is mined to advance today's frontier of scientific knowledge--a forward-looking function for "Whig history."

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Bibliographic Info

Article provided by American Economic Association in its journal Journal of Economic Literature.

Volume (Year): 39 (2001)
Issue (Month): 4 (December)
Pages: 1204-1214

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Handle: RePEc:aea:jeclit:v:39:y:2001:i:4:p:1204-1214

Note: DOI: 10.1257/jel.39.4.1204
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Cited by:
  1. Wilhelm Kohler, 2002. "The Distributional Effects of International Fragmentation," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2002_01, Department of Economics, Johannes Kepler University Linz, Austria.
  2. Carlos A. Cinquetti & Keith Maskus & Ricardo G. Silva, 2011. "A Comprehensive Empirical Analysis of Trade Policy for a Small Country with Monopolistic Competition," EcoMod2011 3399, EcoMod.
  3. K T Soo, 2006. "What does the eclectic trade model say about the Samuelson conundrum?," Working Papers 578283, Lancaster University Management School, Economics Department.
  4. Stefano Zambelli & Thomas Fredholm & Ragupathy Venkatachalam, 2014. "Robust Measurement of National Technological Progress," ASSRU Discussion Papers, ASSRU - Algorithmic Social Science Research Unit 1404, ASSRU - Algorithmic Social Science Research Unit.
  5. Kwok Tong Soo, 2014. "The gains from trade in intermediate goods," Working Papers 63719205, Lancaster University Management School, Economics Department.
  6. Wilhelm Kohler, 2003. "The Distributional Effects of International Fragmentation," German Economic Review, Verein für Socialpolitik, Verein für Socialpolitik, vol. 4(1), pages 89-120, February.

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