This paper explores the role of wage fund as the basic source of credit, capital or finance in a dynamic Ricardian model, which consists of three classes of agents: the workers, the capitalist, and the producers of goods. We introduce and develop an elaborate dynamic wage fund model in the...

An einem fehlerhaften Beispiel wird aufgezeigt, dass ein Land nicht in jedem Produkt einem anderen Land komparativ überlegen sein kann. Absolute Kostenvorteile sind in allen Produkten möglich, doch auch das unproduktivere Land besitzt in der Regel mindestens einen komparativen Kostenvorteil...

This paper develops a complete reconstruction of the real part of the Ricardian model of international trade, which shows that the share of the demand of each good in the total expenditures and the relative size of the economies are the key factors in the determination of the equilibrium terms...

En este trabajo se desarrolla una reconstrucción completa de la parte real del modelo ricardiano de comercio internacional. Esta permite demostrar que la participación de la demanda de cada bien en el gasto total y el tamaño relativo de las economías son los factores clave en la...

Despite his fame, there is still widespread ignorance about the breadth of Adam Smith's contributions to economics, politics and philosophy. In Adam Smith - A Primer, Eamonn Butler provides an authoritative introduction to the life and work of this 'founder of economics'. The author examines not...

There are three main claims in the paper: first, there is sufficient evidence for affirming that Ricardo adhered to Smith's productivity theory second, Ricardo's original demonstration of the comparative- advantage proposition is indeed compatible and complementary with respect to the latter;...

The so-called Ricardian trade model of contemporary economic textbooks is not a rational reconstruction of Ricardo's famous numerical example in chapter seven of the Principles. It differs from the latter in terms of the definition of the four numbers, relevant cost comparison, rule for...

Food security is the broad area of the food for the forth coming generation. Asia's famous economic rise as the “global factory” over several decades was facilitated by outward-oriented development strategies and a multilateral approach, based initially on the General Agreement on Tariffs...

David Ricardo indicated in his famous numerical example in the Principles that it would be advantageous to Portugal to import English cloth made by 100 men, although it could have been produced locally with the labor of only 90 Portuguese men. As the production of the cloth required less...

Adam Smith is commonly referred to as one of the first who thought of foreign trade in terms of an international division of labour, whereby each country specialises in the production of certain goods. It is argued that he made a strong case for foreign trade on this basis. In this article, I...