Ricardo on machinery: a dynamic analysis
I construct a dynamic two-sector model which formalizes Ricardo's argument on the effects of the introduction of machinery. My model does not require the inappropriate assumptions common to other Ricardian models. Using this model, I show that if machinery is introduced, both the demand for labour and the output of the consumption good must decline temporarily and can then recover. As well, the temporal decline of value of the gross produce is not a necessary condition for the above temporal decline of the demand for labour.
Year of publication: |
2000
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Authors: | Uchiyama, Takashi |
Published in: |
The European Journal of the History of Economic Thought. - Taylor & Francis Journals, ISSN 0967-2567. - Vol. 7.2000, 2, p. 208-227
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Publisher: |
Taylor & Francis Journals |
Subject: | Machinery Question Ricardo Unemployment |
Saved in:
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