If you need an accessible version of this item please contact JSTOR User Support

The Ricardo Effect: Its Meaning and Validity

Christian Gehrke
Economica
Vol. 70, No. 277 (Feb., 2003), pp. 143-158
Stable URL: http://www.jstor.org/stable/3548821
Page Count: 16
  • Download PDF
  • Cite this Item

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support
The Ricardo Effect: Its Meaning and Validity
Preview not available

Abstract

This paper is concerned with the meaning and validity of the 'Ricardo effect'. It is shown that the machinery substitution effect contemplated by David Ricardo (a) is not caused by a rise in the real wage rate, (b) is independent of the so-called 'price effect', and (c) presupposes very special assumptions about the available set of production methods. The paper also investigates whether Ricardo's machinery substitution argument anticipates the principle of factor substitution with regard to capital and labour in marginalist theory.

Page Thumbnails

  • Thumbnail: Page 
[143]
    [143]
  • Thumbnail: Page 
144
    144
  • Thumbnail: Page 
145
    145
  • Thumbnail: Page 
146
    146
  • Thumbnail: Page 
147
    147
  • Thumbnail: Page 
148
    148
  • Thumbnail: Page 
149
    149
  • Thumbnail: Page 
150
    150
  • Thumbnail: Page 
151
    151
  • Thumbnail: Page 
152
    152
  • Thumbnail: Page 
153
    153
  • Thumbnail: Page 
154
    154
  • Thumbnail: Page 
155
    155
  • Thumbnail: Page 
156
    156
  • Thumbnail: Page 
157
    157
  • Thumbnail: Page 
158
    158