Mathematical Vindication of Ricardo on Machinery.

S-Tier
Journal: Journal of Political Economy
Year: 1988
Volume: 96
Issue: 2
Pages: 274-82

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Ricardo is shown to be right that machinery can hurt wages and reduce output. A dramatic robot example reveals Knut Wicksell's erro r in believing that Pareto optimality calls for no drop in total outp ut from a viable invention. Under Ricardo's axiom that labor supply a djusts to keep wages at the subsistence level, he can correctly deduc e on a market-clearing basis a rise in his net product (rent plus int erest), while the greater drop in population and total wages results in a reduction in his gross product (rent plus interest plus wages). Copyright 1988 by University of Chicago Press.

Technical Details

RePEc Handle
repec:ucp:jpolec:v:96:y:1988:i:2:p:274-82
Journal Field
General
Author Count
1
Added to Database
2026-01-29