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Ricardo and Comparative Costs

  • Takashi Negishi
  • Takashi Negishi
Chapter
Part of the Advances in Japanese Business and Economics book series (AJBE, volume 2)

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 Chap. 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 revolution against the classical school, it cannot be denied that Ricardo’s theory of comparative advantage is still an important cornerstone of the modern theory of international trade and has been studied intensively by many leading scholars of the neo-classical economics. Such modern interpretations of Ricardo are, however, sometimes very much different from what Ricardo really meant, as will be seen below.

Keywords

Comparative Costs Marginal land Complete specialization Malthsian principle of population Capital mobility Gold as the international currency Specie-flow mechanism Labor value theory 

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Copyright information

© Springer Japan 2014

Authors and Affiliations

  • Takashi Negishi
    • 1
  • Takashi Negishi
    • 2
  1. 1.The Japan AcademyTokyoJapan
  2. 2.The University of TokyoTokyoJapan

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