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MoralesMeoqui
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And then you have the case of the so-called Ricardian trade model, where both the model-builders and their critiques are wrong. https://www.academia.edu/32214661/Ricardo_s_Numerical_Example_Versus_Ricardian_Trade_Model_A_Comparison_of_Two_Distinct_Notions_of_Comparative_Advantage
Dear Prof. DeLong, I think you don't distinguish properly between Ricardo's famous numerical example in the Principles and the textbook trade model of comparative advantage. Otherwise, perhaps you would realise the following points: 1) The original numerical example was not meant to be an argument for free trade. Ricardo declared his support for free trade in the passage you have quoted in the second slide, and therefore a few pages before the numerical example in the Principles. 2) The numerical example is first and foremost an illustration for the proposition that his labor theory of value is not valid for commodities exchanged between two or more countries. 3) Ricardo explains it with the fact that capital is relatively less mobile across country borders than within the same country. 4) Ricardo's numerical example is not based on any unrealistic assumption like full-employment, no transportation costs, etc... A longer explanation is presented in the following paper: https://www.academia.edu/32214661/Ricardos_Numerical_Example_Versus_Ricardian_Trade_Model_A_Comparison_of_Two_Distinct_Notions_of_Comparative_Advantage [Stiglitz agrees with you...]
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What Ricardo actually meant to prove with the famous numerical example is not complex at all. The difficulty resides in sorting through the many misunderstandings surrounding it. See: https://www.academia.edu/32214661/Ricardos_Numerical_Example_Versus_Ricardian_Trade_Model_A_Comparison_of_Two_Distinct_Notions_of_Comparative_Advantage
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