The Miserable Ricardian Gain from Trade
7 Pages Posted: 6 Jun 2011
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: 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
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