"The long dominance of Ricardo over Smith of comparative advantage over increasing returns was largely due to the belief that the alternative was necessarily a mess. In effect, the theory of international trade followed the perceived line of least mathematical resistance. Once it was clear that papers on noncomparative- advantage trade could be just as tight and clean as papers in the traditional mold, the field was ripe for rapid transformation." - Rethinking International Trade, 1990Contrary to assertions that I am sure I will get in the comment section about worshiping Krugman, this is not the case at all. This is a widely recognized point.
Thursday, January 24, 2013
Posted by dkuehn at 8:06 AM
OK, I knew the Krugman-Bastiat thing several months back would ruffle feathers, but I swear I thought Krugman-Smith was common knowledge. I thought I might have a tougher case on Arrow or Stiglitz - still a good case though - but that everyone knew Paul Krugman was the modern Smithian trade theorist. Apparently not. Here is Krugman: