Efficient Specialisation in Ricardian Production: What Can the Example of Cloth and Wine Teach Us?

ifo Schnelldienst 9/2017 paid tribute to Ricardo‘s ground-breaking achievements in modern economics. In his article Wolfram F. Richter, Technical University of Dortmund, examines the numerical example in Ricardo’s theory of comparative costs and looks at how efficient Ricardian production can be characterised if more than two countries and two types of goods are considered.