A Geometric Proof of Complete Specialization in a Three-by-Three Ricardian World Economy
This short chapter provides an illustrative explanation of the Ricardian theory of comparative advantage. Making use of a geometric approach, the proofs of Jones’ well-known theorem and its extended version by Shiozawa are reproduced in the three-country and three-good case. For the use of a geometric explanation, we employ the idea of Amano and Ikema on the goods price set which assures complete specialization.
KeywordsRicardian Theory of Comparative Advantage Complete Specialization Goods Price Vector Jones Shiozawa
We would like to express our thanks to an anonymous reviewer for very useful comments which have vastly improved our chapter.
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