David Ricardo
New interpretation

Ricardo's four magic numbers have long been interpreted as comparison of two ratios of labour (or other input in fixed supply) coefficients. This interpretation is now considered as overly simplistic by modern economists. The point was rediscovered by Roy J. Ruffin in 2002 and re-examined and explained in detail in Andrea Maneschi in 2004. The more flexible approach is now known as the new interpretation, despite having been previously mentioned by Piero Sraffa in 1930 and by Kenzo Yukizawa in 1974. The new interpretation affords a totally new reading of Ricardo's Principles of Political Economy and Taxation with regards to trade theory, although it does not change the mathematics of optimal resource allocation.
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