History of Economic Analysis part 130 pot

See also Marxist System Materialism, and idealism, 30n; atomistic, 66;... independence of a function, 970n; homogeneous functions of zero degree, 1005n; continuous vs.. smooth function

Criticized, 578–84:

as restatement by Malthus, 578;

in first edition of Essay, 579;

in second edition of Essay, 579–80;

Godwin’s criticism, 579n;

paradox of its orthodoxy, 581–2;

in Marshall, Böhm-Bawerk, and Walras, 582, 890;

in Keynes’ early work, 582, 890n;

opponents of, 582–3;

Marx and, 583, 650, 651n;

in wage-fund theory of wages, 666;

in Wicksell, 258, 582, 863, 890n;

as postulate of classical period, 889;

not a postulate of neo-classical period, 889–90;

acceptance of by neo-classical theorists, 890;

‘Malthusianism in reverse,’ 890–91

See also Demography;

Population;

Vital Statistics

Managed Currency, 321–2

Manchesterism, 398, 765, 888

Marginal Analysis, Turgot and, 261;

D.Bernouilli’s hypothesis, 302–5, 1054, 1089;

and law of diminishing returns, 587, 1054, 1089;

value and marginal firm, in Ricardo, 673–4;

Ricardo on marginal cost and productivity, 674n;

need for marginal principle, 677;

Ricardo’s marginal profits, 721;

Clark as discoverer of, 868–9, 918;

Wood’s discovery of, 869n;

neutrality of to social philosophy, 869–70

Marginal Efficiency of Capital, in aggregative analysis, 278n; and money rate of interest, in Thornton, 721;

Fisher’s development of, 872, 1177–8;

and Marshall’s normal profit, 1049;

confusion with interest rate, Keynes on, 1119, 1178;

and Wicksell’s real rate of interest, 1119n;

and old marginal productivity of capital, 1144, 1178n;

as a determinant of income in Keynes, 1176;

meaning of, 1177–8

See also Keynesian System

Marginal Productivity Principle, in Long- field, 464–5, 674n, 677;

in Thünen, 465–8, 674n;

diminishing returns and emergence of, 587;

Ricardo and, 674n;

Clark’s injection of value judgments, 870;

problem of equi-requisite factors, 914–15;

rediscovery of, 914–15;

marginal physical value productivity, 915;

social productivities, 915n, 996n, 998, 1029–30, 1042;

Austrian concept, 915;

in non-Crusoe economy, 916;

Longfield’s and Thünen’s vs Jevons’ and Menger’s, 941–2;

Marshall’s, 941–2;

as partial derivative, 1036;

marginal efficiency and marginal productivity, 1144

See also Diminishing Marginal Productivity, Law of

Marginal Propensity to Consume, see Keynesian System;

Propensity to Consume

Marginal Rate of Substitution, as substitute for marginal utility, 44;

Wood as precursor of, 941;

restrictions on in isoquant analysis, 1044n;

as rejection of Gossen’s law, 1066

Marginal Utility Principle, use of marginal rate of substitution, 44;

Galiani and, 301;

Fisher’s attempt to measure, 305, 872;

D.Bernouilli’s hypothesis, 302–5, 1054, 1089;

Cournot’s discovery, 463;

neglect of, in classical period, 463;

Senior credited with, 600;

Jevons’ priority, 826;

Menger’s discovery, 827;

Marshall as a builder of, 836;

Gossen’s First and Second Laws, 910–11, 1054, 1055, 1066n;

terms used by theorists to denote, 910n, 1055n;

extension by Menger to means of production, 912–13;

Dupuit and Gossen as forerunners, 915n;

and marginal productivity principle, 915;

Walras and, 918;

redundancy of, 1003;

Gossen’s linear functions, 1056n;

cardinal utility, 1060–62;

ordinal utility, 1062–6

Marshallian School, 833–4, 1099

Marxist System, surplus value, 192n, 390, 506, 649, 651, 652;

labor-quantity theory of value, 302, 309, 388, 390, 506, 554, 559–60, 596–8, 627n, 630–31,

649, 650–51, 661–2, 673n, 685, 883–5;

interest theory, 193, 647–51, 652–4, 661–2;

theory of money, 290, 699–701, 702;

wage theory, 390, 650–51, 664n, 685–6, 939n;

theory of classes, 439, 440, 551, 552–4;

difficulty of sub-dividing, 383–4;

as product of bourgeois mind, 387;

economic interpretation of history, 389, 438–42, 462n;

capital-labor relations, 389;

theory of technological unemployment, 390, 651n, 685, 686;

tableau économique, 391;

Hegelian philosophy and, 392, 438;

on bourgeois radicalism, 395;

evolutionism, 391, 438–42, 544, 651, 686, 749–50, 1131;

as unitary social science, 441;

theory of exploitation, 479, 596, 647–51, 896;

Dühring’s attack, 509n;

theory of distribution, 543n, 566, 569, 650, 664n, 933n, 939n;

sociology, 389, 551;

‘bourgeois’ economics, 455n, 559n;

on Proudhon, 457;

and entrepreneur, 462, 556n, 646, 896;

accumulation and capital theory, 556n, 583, 595n, 634, 635, 652, 661–2, 686, 749–50, 882, 887, 902–3, 927n, 1131;

stationary state, 562, 651, 965–6;

and Quesnay, 566n;

output as datum, 569;

theory of economic development, 573–4;

Malthusian principle and, 583, 650, 651n;

and Ricardo, 390, 596–8, 649, 654, 681, 682n, 683, 685;

on abstinence theory, 640, 660–62;

profits, 462, 556n, 646, 649, 682n, 896;

and Smith, 648–9;

absolute law and, 685n;

monopoly trend, 686;

breakdown of capitalism, 687, 748–9, 882, 1131;

on business cycle, 652, 740n, 742, 747–50, 1131–2;

methodology, 562, 651, 748, 965–6;

effect on Sombart, 818;

effect on Böhm-Bawerk, 846, 927n;

Bortkiewicz’s revision of price theory, 851n;

attempts to Keynesify, 885;

theory of socialism, 986;

decreasing costs, 1051;

effect on Tugan-Baranowsky, 1126n

See also Marxism

Marxism, Gotha congress, 454n;

Ricardian socialists and, 479;

Revisionism, 532, 882–3;

Fullarton’s work on banking, 725n;

rise of Marxist parties, 762, 774;

on imperialism, 764, 882;

Engels and Dietzgen, 775;

influence on German economists, 843, 849;

Böhm-Bawerk on, 845

In neo-classical period, 877–85:

as sect and school, 878;

scientific work of, 878;

German Social Democratic party, 879;

Engels, Luxemburg, Kautsky, 880;

Neo-Marxists, 881–2;

Marxist revival, 883–5;

criticism of marginal utility, 887;

emphasis on objective facts, 887;

profits and interest, 896;

exchange economy and use economy, 912n;

retention of Marx’s theory of interest, 926

See also Marxist System

Materialism, and idealism, 30n;

atomistic, 66;

philosophical, and deism, 123;

and environmentalism, 434;

evolutionary, 772

Materialistic Interpretation of History, 786;

Buckle’s theory as, 435;

Marx’s theory, see Marxist System;

Schmoller on, 811

Mathematics, importance of, 14n, 603, 955–6;

‘discovery’ of calculus, 18n, 956n;

Jevons and, 826

Cournot and the mathematical school, 954–63;

mathematical economics, defined, 955;

elementary nature of before 1914, 955;

contribution of Cournot, 958–63

Meaning of system of simultaneous equations, 970;

autonomy vs independence of a function, 970n;

homogeneous functions of zero degree, 1005n;

continuous vs smooth functions, 1027n;

linear homogeneous functions, 1033n

See also Econometrics;

Euler’s Theorem;

Probability, Theory of;

Statistics

Mature Economy, 252

Maximizing Behavior, Theory of, 912n

Mercantilism, and Colbert, 147n;

avoidance of term, 155;

Smith on, 186–7, 335, 337n, 360–62;

Child’s Discourse of Trade, 195–7;

on population, 251;

and unemployment, 272;

contributions to Keynes, 283n;

and free coinage, 298;

quantity theory of money and, 314;

metallist theory of money and, 314

Literature, 335–76;

19th-century opinions of, 336;

export monopolism, 338–40;

exchange control, 340–45;

lack of theoretical analysis, 343–4;

‘primitives,’ 343–4;

balance of trade, 345–62;

from 1675–1775, 362–76;

and classical theory of international finance, 733; crises, 738

See also Neo-Mercantilism

Metals, Monetary, 144–5, 311, 694, 716–17

Metasociology, 120–21, 124–5

Methodology, ‘Ideal Types,’ 80, 606, 818;

and division of problems, 219

In classical period, 536–41:

Ricard ian Vice, 473, 541, 618, 653n, 668, 1171;

validity of procedures, 536–7;

analogy with physical sciences, 537;

use of ‘law,’ 537;

induction vs deduction, 537;

isolation and abstraction, 537–8;

introspection, 577;

common experience, 577

In neo classical period:

J.N.Keynes, 777, 824;

Simiand, 777, 820;

and philosophy, 779–80;

worker’s material and methodology, 785n;

historical school’s, 807, 808, 812

The Methodenstreit, 814–15:

in classical period, 538–40;

ebb of historism, 814;

facts in, 814;

elements of in England, 824;

methodological clashes in sciences, 815

Spiethoff’s, 816–17;

Weber on, 818–19;

in England, 823–4;

defense of, 886–9;

subjective vs objective theory, 919n;

static analysis, see Static Analysis;

dynamic analysis, see Dynamic Analysis;

stationary state, see Stationary State;

partial analysis, see Partial Analysis;

in cycles, 1125, 1165–6;

macrodynamic studies, see Macroanalysis

Microanalysis, and macroanalysis and monetary analysis, 279;

Ricardo’s methods of analysis, 472;

Ricardian Vice, defined, 473

Minimum-of-Existence Wages, see Wages, Theories of

Model-Building, 561–2, 565–6, 632

Modern Period of Economic Analysis, 1914 to Present, World War I not causal factor, 1145;

wealth of statistics, 1146;

new developments of old theory, 1146;

development of dynamics, 1146;

few new scientific problems, 1146–7;

analytically novel problems, 1147

Monetary Analysis, defined, 277–8;

and macroanalysis, 278–80;

spending and saving, 280–82;

defeat of, 282, 287–8

Interlude of, 1600–1760, 283–5;

Becher and, 283–4, 326n;

Boisguillebert and, 284–7;

Quesnay and, 287–8;

in Malthus, 482, 483;

neutrality of money in classical interest theory, 720

See also Real Analysis

Monetary Co-operation, International, Latin, Scandinavian, and German Unions, 1076;

Paris Conference of 1867, 1076;

conferences of 1878, 1881, 1892, 1076–7;

Wolf’s international gold reserve plan, 1077

Monetary Management, schemes for in post-Napoleonic England, 713–17;

Thornton, 713, 721–4;

tabular standard, 489, 526, 713, 714, 1078;

T.P.Thompson on, 713;

Scrope on, 713–14;

Bollman on, 714;

Birmingham Currency School, 714–15;

Mill on, 715;

and gold inflows of 1840’s, 716–17;

French bimetallism, 716–17;

banking and currency schools on, 727

In neo-classical period, 770–71:

awareness of need to control money market, 770;

schemes to divorce circulation from gold, 1077;

employment and, 1077;

bimetallism as scheme of, 1077;

government bonds as a stabilizer, 1078;

control of exchanges and bank credit, 1078;

Jevons’ plan, 1078;

Marshall’s plan, 1078–9;

Fisher’s ‘compensated dollar,’ 1079;

Walras’ plan, 1079

In modern period:

Keynes paper standard, 693

See also Bimetallism;

Symmetallism

Monetary Theory, in Plato, 56;

in Roman law, 70n;

in latin scholasticism, 94–5, 99–101;

in More’s Utopia, 207;

in Turgot, 249;

Cantillon’s, 291, 706

In classical period:

Smith’s, 191, 193, 290, 312, 720, 731;

Senior’s contributions, 484;

Malthus’, 482;

Nazzani’s work, 512;

Ricardo’s, 473, 688n, 693, 699–701, 703–4, 708–12, 715n, 717n, 724, 737, 1079, 1112, 1118;

issues from Restriction Act to gold inflation of 1850’s, 688;

Mill as summarizer, 689;

problems of England during the period, 690–98;

Bullion Report of 1810, 692;

controversy over standard, 693–4;

Tooke on, 694, 708–10, 712–13;

Palmer’s rule, 697–8;

lack of interest in theoretical fundamentals, 698–9;

theoretical and practical metallists, 699–701, 702;

theory of value of money, 701–2;

and earlier English work, 706

Bullionists vs anti-bullionists, 706–11:

Thornton’s analysis, 689, 706–7;

other bullionists, 707–10;

Mill on, 710–11, 1083n;

Resumption Act and, 711

In neo-classical period, 1080–86, 1117:

Davidson’s work, 862n;

no revolution in, 1080;

empirical work in, 1080;

failure to systematize, 1081;

Walras’, see Walrasian System;

Fisher’s, 314n, 721n, 872–3, 1075, 1079, 1082–3, 1101, 1102–3, 1115; Marshall’s, 720n, 1075, 1078–9, 1083–4, 1087–8, 1099, 1108–9; Wicksell’s, 863, 1085, 1088;

Austrians’, 1085–6;

neutral money, 1088–9;

supply-demand mechanism and, 1090;

in interest and cycle theory, 1117;

attempts to extend marginal utility theory to, 1089

Cartalist theory of, in Plato, 56;

defined, 63;

in Quesnay, 234;

theoretical and practical, defined, 288;

in 17th and 18th centuries, 293–9;

and devaluation, 298–9;

affinity to quantity theory, 313

Cash-balance approach:

Locke and, 316;

in Walras’ later work, see Walrasian System;

as application of supply-demand, 1090;

and equation of exchange, 1108, 1109;

Cambridge

equation, 1108–9

Income approach:

in Tooke, 709–10;

and equation of exchange, 1109;

advantages of, 1109–11

Metallist theory:

in Aristotle, 56, 62–4, 289, 290n;

theoretical and practical, defined, 288;

theoretical in 17th and 18th centuries, 289–93, 318;

Petty on, 290;

anti-metallist tradition, 293–9;

and devaluation, 298–9;

stimulus to value theory, 300;

implications of simple, 313;

and mercantilists, 314;

tendency to delineate credit, 318;

Law and, 321;

in classical economists, 699–701, 702;

paper money, 700;

bullionists as, 708;

in neo-classical economists, 1087;

Knapp on, 1091

Quantity theory:

in Tomás de Mercado, 95n, 101;

Bodin as ‘discoverer’ of, 311–12, 312–14, 912n; implications of, 312–16;

quantity theorem, defined, 312–13, 703;

in mercantilists, 314, 357n;

Davanzate, 313–14;

equation of exchange, 314–15, 1099–1106;

Beccaria on, 315;

Law and, 321–2;

in Serra, 354;

analogy with wage-fund, 666n;

interactions of prices and quantity of money, 691n; Marx on, 702;

Senior on, 702–3;

Ricardo on, 703–4, 724, 737;

Mill on, 704–5, 711;

bullionists on, 708;

Wick- sell on, 710n;

Thornton’s analysis of effects of credit on output, 723–4; Böhm-Bawerk and, 928n;

as example of comparative statics, 965n;

and supply-demand mechanism, 1090;

Fisher’s theory, 1083, 1096, 1097–8, 1100–3;

definition of concepts P, M, V, and T, 1096–8;

Wicksell’s M, 1097;

and equation of exchange, see Equation of Exchange;

German and French economists on, 1103;

criticism of, 1103–4;

and purchasing-power parity theory, 1106;

elements of in Keynes, 1176n

State theory, 288n, 1090–91

See also Credit;

Hoarding;

Liquidity Preference;

Monetary Management;

Money;

Money, Value of;

Money, Velocity of

Money, functions of, 62–3, 297, 1087–90;

role in real analysis, 277;

and credit, 320–21, 699, 1097;

legal treatment of, 719–20;

discussion of nature of in neo-classical period, 1086–7

See also Credit

Money, Quantity Theorem of, see Monetary Theory

Money, Value of, analysis of in 17th and 18th centuries, 300; Law on, 321–2;

theory of value and, 701–2;

in neo-classical period, 1089

Index-number approach to, 1091–5:

Edgeworth’s work, 1092;

Walsh’s work, 1092;

Mitchell’s work, 1092;

Fisher’s work, 1092;

role of economic theorists in, 1092–4

Equation of exchange and quantity approach, 1095–1107; cash-balance and income approaches, 1108–10

See also Monetary Theory

Money, Velocity of, Petty’s concept of, 213, 316–17;

Cantillon’s work, 223, 316–17, 319, 706;

introduction into equation of exchange, 315–17;

cash-balance approach, 316–17;

and credit, 318–21, 705, 1097;

in Mill, 705;

Thornton on, 706, 720;

in Say, 710;

income velocity and Pigou, 1098;

not habitually considered constant, 1098;

Kemmerer’s short-run variability in, 1087, 1098, 1100 Monopoly, Aristotle on, 60–61;

in early national states, 150–55;

reasons for, 151–4;

nature of, 154;

in Smith, 189, 264–5, 309;

analysis before 1750, 305–6;

export monopolism, in mercantilism, 338–40;

and the staple, 340n;

in classical economists, 545–6, 602;

Roscher on, 546;

and supply-demand mechanism, 601n;

Cournot’s theory of, 602n, 839, 959, 960, 972n, 973, 976–8; theory of rent in classical economists, 672;

trend toward in Marx, 686;

in American radicalism, 761, 801;

in land, Oppenheimer on, 854n;

in neo-classical theorists, 892;

monopolistic pricing and entrepreneurial gains, 897–8; misuse of concept, 927n;

surpluses to factors in, 937;

theory of, 975–8;

isolated, 976n;

Marshall’s analysis, 960, 977–8, 1049;

maximization of profits over time, 1143;

Mrs Robinson’s concept of, 1151–2

See also Competition, Imperfect;

Competition, Monopolistic;

Discrimination, Price;

Oligopoly

Monopoly, Bilateral, see Oligopoly

Monopsony, 61n

Moral Philosophy, 29, 118n, 130, 141–2

Multiplier, foreign trade, in mercantilists, 350;

static nature of Kahn-Keynes’s, 1174n

Nation, 550

National Economy, 163–4

National Income, see Income Concepts

Nationalism, absence in feudalism, 75–6;

as ally of liberalism, 399;

romanticism and, 418–24;

List and German, 504–5;

in Carey, 516–18

Natural Law, in Roman jurists, 70

Concept of, 107–15:

importance in social sciences, 107;

ethico-legal concept, 108–10;

analytic concept, 110–13;

natural law and sociological rationalism, 113–15

In 17th century, 115–22:

Protestant scholastics, 116–22;

mathematics and physics, 118–19;

economics and political sociology, 119–22;

contributions to economics, 122

From 18th century, 122–42:

sociology of religion, 123;

English empiricism, 123–4;

science of human nature, 124–6;

analytical aesthetics and ethics, 126–30;

self-interest, common good, and utilitarianism, 130–34, 428–31; philosophy of history, 134–7;

Encyclopédistes, 137–8;

and Quesnay, 138, 228–9, 232;

semi-socialists, 139–41;

moral philosophy, 141–2;

and Smith, 184;

and principle of population, 257;

metallist theory of money in, 290;

and free trade, 371;

19th-century systems of, 430;

Hildebrand’s hostility toward, 507

Natural Liberty, 184–5, 403

Natural Philosophy, 29, 118n, 141

Natural Theolgy, 123

Navigation Act of 1660, 152n

Neo-Classical Period of Economic Analysis, more complex techniques, 754; development of teaching, 754–5;

economic associations and journals, 756–7;

background of, 759–80;

general economics of the period, 825–85;

as ‘neo-classic,’ 919–20;