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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."

Suggested Citation

  • Paul A. Samuelson, 2001. "A Ricardo-Sraffa Paradigm Comparing Gains from Trade in Inputs and Finished Goods," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1204-1214, December.
  • 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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    References listed on IDEAS

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    Cited by:

    1. Zambelli, Stefano & Fredholm, Thomas & Venkatachalam, Ragupathy, 2017. "Robust measurement of national technological progress," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 38-55.
    2. K T Soo, 2006. "What does the eclectic trade model say about the Samuelson conundrum?," Working Papers 578283, Lancaster University Management School, Economics Department.
    3. Roberto Roson & Martina Sartori, 2010. "Water Scarcity and Virtual Water Trade in the Mediterranean," Working Papers 2010_08, Department of Economics, University of Venice "Ca' Foscari".
    4. Wilhelm Kohler, 2003. "The Distributional Effects of International Fragmentation," German Economic Review, Verein für Socialpolitik, vol. 4(1), pages 89-120, February.
    5. Kwok Tong Soo, 2014. "The gains from trade in intermediate goods," Working Papers 63719205, Lancaster University Management School, Economics Department.
    6. Faizan, Riffat & Haque, Adnan ul, 2016. "The Relationship between Societal attributes, Feminine Leadership & Management Style: Responses from Pakistan's Urban Region Female-Owned Businesses," MPRA Paper 73458, University Library of Munich, Germany, revised 21 Aug 2016.
    7. Wilhelm Kohler, 2002. "The Distributional Effects of International Fragmentation," Economics working papers 2002_01, Department of Economics, Johannes Kepler University Linz, Austria.

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    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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