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The Astonishing Conclusion of the Attribution Debate on the Law of Comparative Advantage

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  • Morales Meoqui, Jorge

Abstract

The recent demystification of David Ricardo’s famous numerical example in chapter 7 of the Principles bears important implications for the longstanding attribution debate on the law of comparative advantage. It has now become apparent that neither Ricardo nor Smith had anything to do with it. In reality, they both adhered to the classical rule for specialization, allegedly refuted by the law of comparative advantage. The unfounded belief in the existence of this so-called law gradually grew out of the confusion created by John Stuart Mill’s misreading of the purpose, content and implications of Ricardo’s four numbers. As shown in the paper, J. S. Mill, James Mill and Robert Torrens also always adhered to the classical rule for specialization. Thus, the law of comparative advantage is nothing more than an illusion, so no one should be credited for it.

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  • Morales Meoqui, Jorge, 2021. "The Astonishing Conclusion of the Attribution Debate on the Law of Comparative Advantage," OSF Preprints uwdbk, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:uwdbk
    DOI: 10.31219/osf.io/uwdbk
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    1. Blaug,Mark, 1997. "Economic Theory in Retrospect," Cambridge Books, Cambridge University Press, number 9780521577014, September.
    2. Jorge Morales Meoqui, 2017. "Ricardo's Numerical Example Versus Ricardian Trade Model: a Comparison of Two Distinct Notions of Comparative Advantage," Economic Thought, World Economics Association, vol. 6(1), pages 35-55, March.
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    8. Jorge Morales Meoqui, 2011. "Comparative Advantage and the Labor Theory of Value," History of Political Economy, Duke University Press, vol. 43(4), pages 743-763, Winter.
    9. Mill, John Stuart, 1874. "Essays on Some Unsettled Questions of Political Economy," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 2, number mill1874.
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    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • F10 - International Economics - - Trade - - - General
    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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