Advertisement

Ricardo and Comparative Costs

  • Takashi Negishi
Chapter
Part of the Research Monographs in Japan-U.S. Business & Economics book series (JUSB, volume 6)

Abstract

David Ricardo (1772–1823) was the representative theorist of the classical school of economics which was initiated by Adam Smith. Ricardo’s theory of comparative advantage developed in Chapter 7 of his Principles (1817) has been one of the few theories that economists of all the different schools understand and agree with. Although the current mainstream economics, the neo-classical school, has been developed from the marginal revolution1 against the classical school, it cannot be denied that Ricardo’s theory of comparative advantage is still an important corner stone of the modern theory of international trade and has been studied intensively by many leading scholars of the neo-classical economics.2 Such modern interpretations of Ricardo are, however, sometimes very much different from what Ricard really meant, as will be seen below.

Keywords

Comparative Advantage Labor Population Land Rent Wage Cost Gold Production 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Dornbusch, R. S., S. Fischer and P. A. Samuelson, 1977, Comparative Advantage, Trade and Payments in a Ricardian Model with a Continuum of Goods, American Economic Review, 67, pp. 823–839.Google Scholar
  2. Gandolfo, G., 1986, International Economics, Berlin: Springer-Verlag.Google Scholar
  3. Negishi, T., 1982, The labor theory of value in the Ricardian theory of international trade, History of Political Economy, 14, pp. 199–210.CrossRefGoogle Scholar
  4. Ricardo, D., 1951a, On the Principles of Political Economy and Taxation, Cambridge: Cambridge University Press.Google Scholar
  5. Ricardo, D., 1951b, Pamphlets and Papers, 1815–1823, Cambridge: Cambridge University Press.Google Scholar
  6. Ricardo, D., 1952, Speeches and Evidence, Cambridge: Cambridge University Press.Google Scholar
  7. Samuelson, P. A., 1972, The Collected Scientific Papers, 3, Cambridge, Massachusetts: MIT Press, 678–9.Google Scholar

Literature

  1. Kojima, K., 1952, Ricardo’s Theory of International Balance of Payments Equilibrium, The Annals of the Hitotsubashi Academy$12(1), pp. 76–92 (Kojima [ 1996 ], pp. 3–19 ).Google Scholar
  2. Kojima, K., 1996, Trade, Investment and Pacific Economic Integration, Tokyo: Bunshindo.Google Scholar
  3. Negishi, T., 1996, Japanese Studies of Ricardo’s Theory of Foreign Trade, The Japanese Economic Review$14784, pp. 335–345 (Negishi [ 2000 ], pp. 90–100 ).Google Scholar
  4. Negishi, T., 2000, Economic Thought from Smith to Keynes, Aldershot: Edward Elgar.Google Scholar
  5. Ricardo, D., 1951, On the Principles of Political Economy and Taxation, Cambridge: Cambridge University Press.Google Scholar

Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Takashi Negishi
    • 1
  1. 1.Aoyama Gakuin UniversityJapan

Personalised recommendations