On the Magic Behind David Ricardo's Four Mystical Numbers

Daniel M. Bernhofen
2007 Social Science Research Network  
Building on Ruffin's recent interpretation of Ricardo's four numbers as labour embodied in trade rather than domestic labour coefficients, I identify the magic behind these four mystical numbers. I show that the magic lies in Ricardo's underlying logic in predicting the pattern of international trade. Using a single graphical framework, I show that Ricardo's logic provides a device for a unified treatment of the commodity and the factor content predictions of international trade with an
more » ... y number of goods, factors and countries. JEL classification: F11 Keywords: Ricardo's magic numbers, pattern of trade predictions, higher dimensional issues in trade theory. Outline
doi:10.2139/ssrn.956598 fatcat:3p7mqh4m7ngebmbcszephjq5vm