The Miserable Ricardian Gain from Trade

7 Pages Posted: 6 Jun 2011

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

Date Written: May 1, 2011

Abstract

This paper shows that David Ricardo’s gain from trade is miserably small compared with Adam Smith’s gain from division of labor. It then proves that Ricardo’s comparative advantage means forced exchange. Finally, it shows that Walras’ free cooperation theory better explains international trade.

Keywords: Comparative advantage, Gain from trade, Offer Curve

JEL Classification: F11, D52

Suggested Citation

Choi, Hak, The Miserable Ricardian Gain from Trade (May 1, 2011). Available at SSRN: https://ssrn.com/abstract=1858144 or http://dx.doi.org/10.2139/ssrn.1858144

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

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Chung-Hua Institution for Economic Research ( email )

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