RE: [OPE] Paul Krugman wins Nobel

Date: Tue Oct 14 2008 - 14:01:51 EDT

> Mr. Krugman won the prize for his research, beginning in 1979,
> that explained patterns of trade among countries, as well as what
> goods are produced where and why.

Yes, and his paper "The Theory of Interstellar Trade" was
dated July, 1978.
> Ironically there are still many Marxists who hold to Ricardo's theory of "comparative advantage"
> which Marx almost certainly rejected, and Ricardian this theory is still mainfare in economics
> classes because it seems to explain the benefits of trade and the division of labour (specialization).

Hi Jurriaan:

_The New York Times_ story was misleading in that respect: Krugman accepted the
Heckscher-Ohlin-Samuelson (H-O-S) theory of trade rather than simply the Ricardian theory
of comparative advantage. While there are problems with the Ricardian theory - which,
as you say, Marx spoke to - there are additional problems with the neo-neoclassical
attempt to generalize comparative advantage theory within the context of general equilibrium
theory. Joan Robinson and Ian Steedman were particularly good at roasting
the H-O-S theory of trade.

In solidarity, Jerry

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