Ricardo vs. “Ricardian” Model

The so-called Ricardian model of contemporary economic textbooks differs significantly from the famous numerical example included in chapter seven of the Principles. The difference is not merely with respect to the definition of the four numbers, but also in terms of underlying proposition, logical construction, assumptions and theoretical implications. Therefore, the textbook model should no longer be considered as part of Ricardo’s international trade theory, nor taken as basis for understanding Ricardo’s superior demonstration of comparative advantage in the Principles.