Monday, September 24, 2007

The Trade Advantage Argument

Robert Driskill wrote a good Paper(pdf), and I decided to read it, because of the Thoughts of Dani Rodrik and Arnold Kling. It will inevitably led me into trouble, as I feel I must place my own impress upon the Issue. The confusion of the Issue resides in usage of the Ricardian Two-Good model in the first place. Understand that the Ricardian model is a formalization of an efficiency model which expounds methodology for compressing Production inputs in the Production process, in order to attain a higher rate of Output at less Cost. It works equally as effectively internally as externally, and will carry over into the arena of technological advance theory as well. One does not understand that the Ricardian model will work in the periphery of Trade Advantage, though Most assume that it will work effectively...more>>