Mill's paradox: Difference between revisions
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In economics, the Mill's paradox is a classical proposition that asserts an inverse correlation between the size of a country and the magnitude of its gains from its trade.<ref>{{cite book|title=Research and Information System Digest, Volumes 12-17|url=https://books.google.com.ar/books?id=2hjsAAAAMAAJ&q=%22Mill%27s+paradox%22&dq=%22Mill%27s+paradox%22&hl=en&sa=X&ved=0ahUKEwjQza262_baAhVCUJAKHWzeCw44ChDoAQgnMAA}}</ref> The term was coined by Edgeworth (1899).<ref>{{cite book|last1=Maneschi|first1=Andrea|title=Comparative Advantage in International Trade: A Historical Perspective|url=https://books.google.com.ar/books?id=Vu_igwzgYzoC&pg=PA118&lpg=PA118&dq=%22mill%27s+paradox%22&source=bl&ots=oXBMwrCV5U&sig=jPyT20YtNPNleqBwf-M6jwRMthc&hl=en&sa=X&ved=0ahUKEwjHw7-A2PbaAhVEhpAKHTYGAPkQ6AEINzAE#v=onepage&q=%22mill's%20paradox%22&f=false}}</ref> In {{w|John Stuart Mill}}'s words, "The richest countries, ''caeteris paribus'', gain the least by a given amount of foreign commerce: since, having a greater demand for commodities generally, they are likely to have a greater demand for foreign commodities, and thus modify the terms of interchange to their own disadvantage".<ref>{{cite book|last1=Dimand|first1=Robert W.|title=The Origins of International Economics: Classical theory of the gains from trade|url=https://books.google.com.ar/books?id=NDPTeqMn9hwC&pg=PA489&lpg=PA489&dq=%22mill%27s+paradox%22&source=bl&ots=3k-gf0fJew&sig=V3QtQz2RQ_C9FATv6IdhBsnnTNM&hl=en&sa=X&ved=0ahUKEwjJkoPA1fbaAhWDEpAKHSvSArIQ6AEINDAD#v=onepage&q=%22mill's%20paradox%22&f=false}}</ref> | |||
John Somerset Chipman argues that the Mill's paradox is not a paradox at all; rather, it is another name for the Law of Demand.<ref>{{cite book|last1=Somerset Chipman|first1=John|title=The Theory of International Trade, Volume 1|url=https://books.google.com.ar/books?id=Sl1YcDJHYBMC&pg=PA16&lpg=PA16&dq=%22mill%27s+paradox%22+commerce&source=bl&ots=H-TIDXdhIA&sig=0cHiDiKN62XKep9QjW2SCkoBOnM&hl=en&sa=X&ved=0ahUKEwjesdbq1PbaAhVCDJAKHZ6-DIQQ6AEILzAB#v=onepage&q=%22mill's%20paradox%22%20commerce&f=false}}</ref> | John Somerset Chipman argues that the Mill's paradox is not a paradox at all; rather, it is another name for the Law of Demand.<ref>{{cite book|last1=Somerset Chipman|first1=John|title=The Theory of International Trade, Volume 1|url=https://books.google.com.ar/books?id=Sl1YcDJHYBMC&pg=PA16&lpg=PA16&dq=%22mill%27s+paradox%22+commerce&source=bl&ots=H-TIDXdhIA&sig=0cHiDiKN62XKep9QjW2SCkoBOnM&hl=en&sa=X&ved=0ahUKEwjesdbq1PbaAhVCDJAKHZ6-DIQQ6AEILzAB#v=onepage&q=%22mill's%20paradox%22%20commerce&f=false}}</ref> | ||
Latest revision as of 18:16, 8 May 2018
In economics, the Mill's paradox is a classical proposition that asserts an inverse correlation between the size of a country and the magnitude of its gains from its trade.[1] The term was coined by Edgeworth (1899).[2] In John Stuart Mill's words, "The richest countries, caeteris paribus, gain the least by a given amount of foreign commerce: since, having a greater demand for commodities generally, they are likely to have a greater demand for foreign commodities, and thus modify the terms of interchange to their own disadvantage".[3]
John Somerset Chipman argues that the Mill's paradox is not a paradox at all; rather, it is another name for the Law of Demand.[4]