Physiocratic Dichotomy in Price Determination and Its Ricardian Resolution

I indicated and analyzed in my early works the physiocratic dichotomy in the determination of price, in criticizing chiefly A. Oncken’s and A. Kubota’s view of Quesnay’s value theory.1 Quite recently I was very impressed by G. Vaggi’s argument about the point at issue in his interesting book on Quesnay’s economics.2 I want therefore to reconsider, in the following pages, that physiocratic dichotomy, particularly throwing light on the phases of its life cycle, that is to say, its birth in Quesnay’s mind, its succession via Turgot and Smith, and its death as a result of Ricardo’s fatal blow. I hope one facet of Ricardo’s contribution to classical political economy will be clarified by this short attempt.