Knowra David Ricardo David Ricardo David Ricardo (1772–1823) was an English political economist whose theories of comparative advantage, rent, and income distribution shaped classical economics.
Classical economics : An economic tradition that analyzes production, distribution, growth, and markets, associated with writers such as Adam Smith and David Ricardo. Ricardo’s theories became a central part of this tradition.
Comparative advantage : The ability to produce a good at a lower opportunity cost than another producer. Ricardo’s trade argument shows why specialization can benefit countries even when one is more productive in every good.
James Mill : A Scottish philosopher and historian who became a close associate and intellectual ally of David Ricardo. Mill encouraged Ricardo to publish and helped advance his political and economic ideas.
On the Principles of Political Economy and Taxation : David Ricardo’s 1817 book on value, rent, wages, profits, taxation, and international trade. This work presented his systematic account of distribution and comparative advantage.
Labor theory of value : A family of theories that explains the value of commodities through the labor required to produce them. Ricardo used labor requirements to explain relative value, while allowing qualifications for capital and production time.
Ricardian model : A trade model in which differences in labor productivity create comparative advantage between countries. It formalizes Ricardo’s account of specialization and mutually beneficial trade.
Thomas Robert Malthus : An English political economist and clergyman known for analyzing population, rent, and aggregate demand. His disagreements with Ricardo over value, rent, and demand shaped both economists’ arguments.
Ricardian equivalence : The proposition that government borrowing may not stimulate demand if households anticipate future taxes and save accordingly. Later economists attached Ricardo’s name to a public-debt argument inspired by his discussion of government finance.
Economic rent : Income received for controlling a scarce resource beyond the minimum needed to keep it in its current use. Ricardo analyzed rent as a consequence of differences in land fertility and scarcity.
Differential rent : Rent arising because land plots differ in fertility, location, or other productive advantages. Ricardo explained how cultivation of less productive land raises returns on better land.
Show all 20