Ever since its publication, Pasinetti’s 1960 paper has been a primary reference for all scholars interested in Ricardian economics. However, Kaldor's 1955-6 diagram is a very effective tool for depicting the salient features of the Ricardian system and its full heuristic potentialities are still under-explored. Accordingly, we give it pride of place in this paper. In what follows, after a brief presentation of a slightly amended version of Kaldor’s original diagram, we show how this diagram may be modified to represent Pasinetti’s two-sector model of a closed economy. Next we use it to analyse alternative consumption patterns. Finally, we employ a variant of Kaldor’s diagram to study a two-sector model of an open economy. In a first stage, we study a small open economy facing given international commodity prices; in a second stage, we study the world economy in which international trade takes place among several small open economies.

Salvadori, N., Signorino, R. (2017). The Ricardian System. A Graphical Exposition. In M. Fujimoto, S. Senga, T. Tabuchi (a cura di), Ricardo and International Trade (pp. 60-81). London : Routledge, Taylor & Francis.

The Ricardian System. A Graphical Exposition

SIGNORINO, Rodolfo
2017-01-01

Abstract

Ever since its publication, Pasinetti’s 1960 paper has been a primary reference for all scholars interested in Ricardian economics. However, Kaldor's 1955-6 diagram is a very effective tool for depicting the salient features of the Ricardian system and its full heuristic potentialities are still under-explored. Accordingly, we give it pride of place in this paper. In what follows, after a brief presentation of a slightly amended version of Kaldor’s original diagram, we show how this diagram may be modified to represent Pasinetti’s two-sector model of a closed economy. Next we use it to analyse alternative consumption patterns. Finally, we employ a variant of Kaldor’s diagram to study a two-sector model of an open economy. In a first stage, we study a small open economy facing given international commodity prices; in a second stage, we study the world economy in which international trade takes place among several small open economies.
Settore SECS-P/01 - Economia Politica
Settore SECS-P/04 - Storia Del Pensiero Economico
Salvadori, N., Signorino, R. (2017). The Ricardian System. A Graphical Exposition. In M. Fujimoto, S. Senga, T. Tabuchi (a cura di), Ricardo and International Trade (pp. 60-81). London : Routledge, Taylor & Francis.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/228972
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