The substitution of machinery for labour as a consequence of a rise in wages. This occurs because the ratio of wages to product prices changes, affecting the profitability of an industry. Hayek, F.A.von (1942) ‘The Ricardo effect’,...

Sir Harry Ricardo (26 January 1885 – 18 May 1974) was one of the foremost engine designers and researchers in the early years of the development of the internal combustion engine. He improved on the engines that were used in the first tanks, oversaw...