Smith's and Ricardo's common logic of trade
AbstractRicardo 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27143.
Date of creation: Dec 2010
Date of revision:
comparative advantage; absolute cost advantage; Ricardian model; international trade theory; free trade;
Find related papers by JEL classification:
- B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
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- NEP-INT-2010-12-18 (International Trade)
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- Morales Meoqui, Jorge, 2012. "On the distribution of authorship-merits for the comparative-advantage proposition," MPRA Paper 35905, University Library of Munich, Germany.
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