David Ricardo

David Ricardo (1772-1823), a British economist, was one of the most influential of the classical economistss. He was also a successful businessman, financier and speculator, and amassed a considerable fortune.

Ideas associated with David Ricardo include:

• The theory of comparative advantage, which showed that nations could benefit from free trade, even if a nation was less efficient at producing all kinds of goods than its trading partners.

• Ricardian equivalence, an argument suggesting that in some circumstances the choice of a government to pay for spending using either taxes or deficit spending might have no effect on the economy.

• An analysis of the nature of land rent.

External links

• Complete text of Ricardo's On the Principles of Political Economy and Taxation.