Unifying Ricardo's Theories of Growth and Comparative Advantage.

The paper formally integrates Ricardo's two-sector growth model with his theory of comparative advantage. Differences with conventional representations of Ricardian trade theory, as well as with Heckscher-Ohlin-Samuelson theory , are noted. It is shown that the Ricardian equilibrium terms of trade are fully determinate, as against the standard Millian view. Also, trade may, depending on direction of specialization, inhibit rather than promote growth and lead to a net contraction of the world economy. Copyright 1986 by The Review of Economic Studies Limited.

A Classical Model of Growth, Expectations and General Equilibrium.

Building on Ricardo's two-sector corn model, this paper develops a classical alternative to the standard neoclassical two-by-two general equilibrium model. The alternative model has the following characteristics: (1) as against related neo-Ricardian work, it is fully causal and capable of tracing the economy's traverse from arbitrary initial conditions to a growth steady state (with land-augmenting technical progress); and (2) the simultaneous presence of a wage fund and of land makes possible the incorporation of expectations formation and perfect-foresight equilibrium. Copyright 1989 by The London School of Economics and Political Science.