The Neo-Ricardian School of economic thought is naturally based on the theories of David Ricardo. The school is somewhat similar to Post-Keynesian and Neo-Marxian economics. Neo-Ricardian economics is based on intensely mathematical theory that suggests that the value of labor described by Karl Marx and Frederich Engels is both determined by, and inconsistent with producer prices. The school draws on Piero Sraffa’s interpretation of Ricardo’s work in Production of Economies by Means of Commodities. Sraffa argues that marginal productivity theory must have an adequate aggregate means to measure capital. Since, according to Sraffa, this tool is not available, marginal productivity theory must be false.
Notable Neo-Ricardian Economists
Here is an analysis of Britain’s budget and windfall taxes on petroleum that involves Neo-Ricardian economics.