History of Economic Analysis part 127 ppsx

See also Competition, Monopolistic Competition, Monopolistic, Marshall as pointing toward, 840, 975, 1150; Cheysson’s product variation, 842n; surpluses to factors in, 937; Marshall-Wic

Overstone and Juglar on periodicity, 742n;

Wade’s dynamic model, 743n;

H.Clarke’s anticipation of Kondratieff cycle, 743n;

Langton’s anticipation of Jevons’ ‘autumnal drain,’ 743n; Clarke and Langton on multiplicity of cycles, 743;

Tooke’s and Overstone’s new impetus to, 743–6, 1123, 1124; failure of synthesis of ideas, 746–7;

Marx on, 652, 740n, 742, 747–50, 1131–2

In neo-classical period, 1123–35:

Marshall on, 747;

Pantaleoni on endogenous fluctuations, 857;

Marshall and Fisher on role of hoarding, 1087–8;

all essential facts and ideas emerged by 1914, 1123, 1164;

‘cycle’ ousts ‘crisis,’ 1123;

Juglar’s performance, 1123–4, 1164;

Kondratieff and Kitchin, 743n, 1124n, 1158;

establishment of method, 1125;

fluctuations in plant and equipment, 1125;

large amplitudes in constructional industries, 1125–6; Spiethoff’s work, 1126–7, 1164;

monetary as investment theories, 1128;

investment theories and starting mechanisms, 1128; price as investment theories, 1128–9;

exogeneous vs endogeneous theories, 1133;

Böhm-Bawerk on, 1134;

acceleration principle, 1134n;

failure to synthesize common agreements, 1135;

failure to see cycles as inherent in capitalism, 1135

In modern period, 1163–9:

Pigou’s work, 1164;

Harvard Committee’s work, 1165–6;

Mitchell and the National Bureau, 1124, 1164, 1165, 1166; oscillators in, 1167;

economy as resonator, 1167–8;

limitations of macroeconomics in, 1167–8;

cornhog cycle, 1168;

shipbuilding cycle, 1169;

inventory cycle, 1184n

See also Business Cycle Theories, General Gluts

Business Cycle Theories, debt-deflation theory, 1122

Disproportionality theory of crises:

meaning of, 739n, 1133n;

of Say, 739–40;

Ricardo on, 740

Harvest theory:

W.S.Jevons, H.S.Jevons, Moore, 742, 743n, 744–5, 1133;

in Tooke, 744–5;

Moore’s crop theory, 876–7

Individual event theories, 1134

Innovation theory:

and explanation of ‘Great Depression,’ 760;

Mrs England on, 1128

Monetary (and credit) theories:

meaning of, 1121n;

Say on, 739;

Mill’s credit cycles, 743, 747;

Over-stone on, 745, 746;

Norman’s qualified, 745n;

Marx’s contempt for, 749;

Wicksell’s cumulative process, 722, 1118–20; Mises’ theory, 1120;

Hayek on, 1120;

Hawtrey’s theory, 1121;

vagaries of gold used to explain cycle, 1121–2;

as variants of investment theories, 1128

‘Overproduction’ theory of crises, 273, 739, 747

Random-disturbance theories, 741

Replacement cycle theories:

Marx on, 750n;

shipbuilding cycle, 1169n

Stalling theories, 1133–4

Underconsumption theories:

3 types defined, 740n;

Sismondi, 494, 740–41;

Rodbertus, 506–7;

common element in types, 565;

Malthus’ as oversaving type, 740;

Quesnay as forerunner of nonspending type, 740n; Marx and, 740n, 1132;

Roscher on, 741;

Mill on, 747;

nonspending type as Keynesian, 750;

Hobson’s, 832n, 1088, 1130–31;

over-saving theories, elements of truth in, 1129–30

See also Business Cycle Analysis;

General Gluts

Cameral Science, see Consultant Administrators

Capital, in Roman law, 322–3;

monetary concept, 101, 323;

use of ‘stock’ for, 323, 326;

and land and labor, 560, 561n, 899

In classical period, 625–44:

Lauder-dale’s achievement, 560;

structure of physical capital, 631–7;

reasons for many definitions, 632;

as goods, 632–3, 646–7;

in Smith, 634, 635;

in Malthus, 634;

in Ricardo, 634, 635–6, 637, 653–4, 668, 682, 745n, 902–3;

in Marx, 634–5, 640, 661–2;

organic composition of, 635, 652;

constant and variable, 635, 652;

wage and technological, 635, 641, 642, 658, 680;

fixed and circulating, 635–6, 1021–2;

Senior’s contributions, 584, 632, 634, 637–40;

Mill on, 561, 632n, 634, 640–45, 659;

as result of saving, 641–3;

saving and consumption, 643;

as accumulated labor, 561, 657;

international movements of, 732

In neo-classical period, 898–909:

controversies over concept, 898–903;

attempts at quantification, 899–900, 902;

Walras on, 999n, 1000n, 1002

See also Capital, Theories of

Capital, Theories of, Quesnay’s, 235–7, 266, 323–4, 667;

Cantillon’s, 323, 667;

and failure of marginal utility theory, 920

Abstinence theory:

Senior, 484, 638–40;

Marx on, 640, 661–2;

on behavior of interest rate in time, 662

Advance theory:

physiocrats, 235–7, 266, 323–4, 564, 667;

Turgot’s, 249, 323–4, 564, 642, 667;

in Smith, 191–3, 236–7, 323–4, 332–4, 642;

in classical economists, 564–5;

discounts and ‘abstinence’ in, 564–5;

and exploitation theory of interest, 648–9;

in Marx, 661;

in wage-fund theory, 667;

dependence on saving, 667

Roundabout theories:

in Long-field, 465;

in Rae, 469, 846;

in Wicksell, 561n, 637, 907–8;

in Ricardo, 594–5, 636–7;

Senior’s roundabout processes, 638;

in Menger, 846;

Böhm-Bawerk’s, 217n, 465, 469, 561n, 594–5, 633, 636, 637n, 638, 846–7, 871, 902–9; subsistence fund in, 637n, 903–4;

period of production, 465, 469, 594–5, 636, 846–7, 905–9;

Jevons’, 637n, 902–5, 929

Marx’s theory, see Marxist System;

Walras’ theory, see Walrasian System

See also Capital, Investment, Savings

Capitalism, and scholasticism, 78–82;

attack on feudalism, 78;

emergence of in 15th century, 78;

in rise of national states, 144, 151–4;

and warrior classes, 144;

effect of inflow of monetary metals, 144–5;

and breakdown of Church authority, 145;

credit in, 318;

Marx and first explicit model of, 391;

Mill on, 532–3;

classical economists on, 544;

classical economists use of medium-sized, owner-managed firm, 545; word used by Marxists, 552n, 899n;

tendency toward socialism, 763;

rapid evolution of and resistance to, 763

See also Bourgeoisie

Catallactics, 536n, 911, 940

Catholic Church, see Roman Catholic Church

Central Banking, bank note in theory of, 695n;

emergence as controller of banking system, 696–8;

and Palmer’s rule, 697–8;

open market operations, 697, 1078;

and banking school, 727;

and currency school, 727;

English practice and Bank Charter Act, 729;

Thornton’s sketch of policy, 729

In neo-classical analysis, 770–71, 1112;

interference with automatic gold standard before 1914, 1078

See also Bank of England;

Credit;

Federal Reserve System;

Monetary Analysis;

Monetary Management;

Monetary Theory

Chartism, 453

Cheapness, Fallacy of, 235n, 285, 350

Cheapness-and-Plenty Doctrine, 235n, 274, 285–7, 350, 1129n

Child Labor, 274–5

Chrematistics, 53, 493, 536

Circuit Flow, see Stationary State

Classes, Social, Cantillon-Quesnay schema of, 239–41, 249;

in classical economics, 550–54;

Marxist, 430, 440, 551, 552–4;

antagonism of, in Ricardo, 553–4;

voluntary retreat of, 761n;

opposition of those harmed by capitalist evolution, 763;

Schmoller’s theory of, 813

In neo-classical economics, 886;

and sociological individualism, 888–9

Classical Period of Economic Analysis, 1790–1870, meanings of, 379n, 379–80; backgrounds of, 393–406, 407–62;

scope and method, 534–41;

schema of economic process, 554–70

Classical Situations, meanings of, 51

First, 52, 143, 155, 161, 290

13th century scholasticism as a, 87

Second, Mill’s role in, 380

Third, 753–4, 825, 953

Cobweb Theorem, see Dynamic Analysis

Commodity Theory of Money, see Money, Theories of, Metallist Theory

Commutative Justice, 60, 61, 62, 93, 94

Comparative Cost, Theorem of, in mercantilists, 373–4;

Torrens as discoverer of, 490, 607;

as analytical contribution, 517;

Ricardo’s, 607, 611–15;

and reciprocal demand, 612;

and labor-quantity theory of value, 612;

restatement in terms of opportunity cost, 612

Comparative Statics, Ricardo’s concentration on, 494–5, 682–3; use for study of change, 563;

Oppenheimer’s coining of phrase, 854n, 965;

Moore’s work on statistically operative, 876;

and evolutionary state, 964–5

Competition, in neo-classical period, 972–84;

as normal case, 972;

Pareto on, 972n;

use to make patterns manageable, 972;

principle of excluded strategy, 972–3;

substance of pure or perfect competition evolved, 973

Competition, Free, in ‘classical’ economists, 545–6;

in Keynes, 1175

Competition, Imperfect, Mill’s recognition of, 546;

Marshall’s awareness of, 975;

Sraffa’s work in, 1047, 1151;

Marshall-Wicksell theorems, 1142;

emergence of from new attention to firm, 1142;

Mrs Robinson’s performance, 1151–2;

Kahn’s contribution to, 1172

See also Competition, Monopolistic

Competition, Monopolistic, Marshall as pointing toward, 840, 975, 1150; Cheysson’s product variation, 842n;

surpluses to factors in, 937;

Marshall-Wicksell theorems, 1142;

emergence of from new attention to firm, 1142;

Chamberlin’s performance, 1150–51

See also Competition, Imperfect

Competition, Perfect, in Boisguillebert, 216;

maximizing doctrine of, 233, 765, 888, 985, 986n, 1070;

Cournot on, 545n, 959;

Roscher on, 546;

classes and, 554;

failure of Ricardo to specify, 592;

in classical and neo-classical economists, 892

Competition, Pure, Chamberlin’s introduction of, 973n;

Cournot’s development of, 973;

Jevons’ law of indifference and one price in, 973;

Walras’ libre concurrence, 973;

Pareto’s definitions, 973;

difficulties in concept, 973–4;

Marshall on, 974, 985–6;

Walras on, 985, 1004;

Wicksell on, 986n

Complementarity, of factors, 917

Consistency Postulate, 1067–8

Constant Costs, 613, 1033n

See also Euler’s Theorem

Consultant Administrators, heterogeneity of, 143;

special circumstances facing, 148–55

Literature of, 159–67:

Polizeiwissenschaft, 159–60;

Carafa, 162–4;

Bodin and Botero, 164–5;

English, 165–7;

Spanish, 165

Systems of, 1600–1776, 167–94:

early literature, 167–70;

Justi’s welfare state, 170–72;

Spanish, 172–3;

French, 174–6;

English, 176;

Italian, 176–81;

Smith and, 181–94

Quasi-systems, 194–9;

on public finance, 199–206;

on utopias, 206–8;

unemployment in, 272;

and Becher’s principle, 284;

metallist theory of money in, 290;

on gains of trading parties, 359;

influence of Smith, 501–2;

entrepreneur in, 555–6

Consumers’ Behavior, Theory of, modern, 1148–9

Consumer’s Rent, Jenkin’s discovery, 837n, 839;

conditions on demand curve allowing use of, 992;

as attempt to make measurement of utility operational, 1061–2; and welfare economics, 1070

Consumption, limiting factor of output, 178;

Boisguillebert on, 216, 284–5;

of landlords, in Cantillon, 221;

in Becher, 283;

in Quesnay, 287;

Dieterici’s thesis, 523n;

productive vs unproductive, 631n, 642n

Consumption Function, see Keynesian System;

Propensity to Consume

Contract Curve, 831, 984

Cost, Theories of, Mill’s, 660, 917;

Austrians’ and Jevons’ new, 922–3;

Marshall’s real cost theory, 923–4, 1057;

opportunity cost theory, 917, 1044;

need to co-ordinate with production theory, 1051–2

Cost Functions, Statistical, 842n, 962

Credit, in scholastic analysis, 318;

and velocity of money, 318–21, 705n, 1097;

function of bank, 319–20;

dis tinguished from money, 320–21;

creation of, 321–2, 621;

in Mill, 699n, 704, 718n, 720n, 722, 726, 747

English theory of, in classical period, 717–31:

relations between prices, interest, and, 719;

monetary theory of, 719;

legal treatment of, 719–20;

neutrality of on money rate of interest, 720;

Thornton on, 720–24;

controversy over Bank Charter Act, 725–31;

and business cycle, see Business Cycle, Theories of, Monetary;

banking school, 726–29;

currency school, 725n, 726–8, 1111, 1120;

historical school’s work, 810

In neo-classical analysis, 1110–17:

reluctance to include deposits as money, 1097;

narrowness in conception of credit, 1113, 1114–15; theory of credit creation, 1114–17

Crises, see Business Cycles

Darwinian Evolutionism, see Evolutionism

Dearness-and-Plenty Doctrine, 235n, 285–7, 350, 1129n

Decreasing Costs, Hadley’s definition, 866;

Marshall’s analysis of, 892, 982, 985, 1045;

Cournot’s formulation of, 976n;

not synonymous with increasing returns, 1045n;

and profits, 1051

Deism, 123n

Demand Curve, Verri on, 306n, 960;

Whewell’s, 448n;

classical economists’ concept of, 602, 960;

Mill’s statement of, 603;

and aggregate demand curve, 623–4, 1176n;

for labor, Jenkin’s, 664, 837n;

in Cournot, 839, 959, 976;

Auspitz’s and Lieben’s total and marginal, 849;

not defined before 1838, 976;

Marshallian, 991–2, 996;

constancy of marginal utility of money, 991;

restrictions on use of, 992;

joint demand, in Marshall and Edgeworth, 996;

marginal revenue curve, 1151n

See also Elasticity Concepts

Demand Curve, Statistical, King’s law of demand for wheat, 212–13; Cheysson’s work, 842n;

Moore’s work, 876, 961;

Fisher’s work, 961;

Schultz’s work, 962;

importance of for theory, 962

Demography, 525–6, 583

See also Population

Deposits, 699, 727, 1097 [312, 321

Devaluation of Currency, 99–100, 298–9,

Diminishing Marginal Productivity, Law of, 1037

Diminishing Marginal Utility, Law of, equalitarian implications of, 888;

in Menger, 910;

in Marshall, 910;

and progressive taxation, 946;

Bernouilli’s hypothesis, 946n

Diminishing Returns, and populationist theories, 259;

extensive margin, 259, 586;

intensive margin, 259, 586–7, 675, 936n;

Turgot’s definition, 259–60, 1036;

in agriculture, 261;

historical increasing returns and, 262–3

Development in classical period, 585–8:

Senior’s 4th postulate, 584–8;

failure of Smith to include, 585;

minimization of technological progress in agriculture, 585–6; West’s role in, 476, 586;

in Mill, 581, 672;

Edgeworth’s formulation, 585, 587, 831, 1037–8;

in Marshall, 259, 585, 587, 893, 1070n;

in Böhm-Bawerk, 587n, 588n, 905;

as empirical statement, 588;

Wicksell on, 588n;

in Ricardo-West theory of falling interest rate, 652–3; scarcity and, 676n;

Jones on Ricardo’s law of, 822n;

new law of opportunity cost and, 917;

generalization of, 936, 1032;

state of the arts and, 1032;

law of in primary and secondary senses, 1036;

and increasing cost, 1045n

See also Rent of Land, Theories of

Discrimination, Price, 978

Distribution, Theory of, Cantillon’s 3 rentes, 222, 499;

Marx on, 543n;

Smith on, 557–8, 567–8, 654n;

Turgot-Say-Smith model, 567–8

In classical economics, 645–87:

Ricardo’s analysis, 483, 543, 553–4, 568–9, 592, 652–3; classical failure to see as valuation problem, 543, 680; Malthus’, 568;

Mill’s, 569–70;

profits and interest, 645–62;

wages, 662–71;

rent, 671–9;

technological advance, 679–87

Böhm-Bawerk’s theory, 846;

Wieser as completer of Austrian, 848, 913;

Pareto’s law, 859, 961;

revolution in neo-classical period, 909–20;

problem of in socialist economy, 988;

linear homogeneity and constancy of relative shares, 1042

Marginal product theory:

Long-field’s theory, 465, 915n;

Thünen’s theory, 466–7, 915n;

freedom from social or political philosophies, 869–70, 914n; Clark and, 870, 915, 936n;

Menger’s, 912–13, 915, 916, 941–2;

Jevons’, 913, 941–2;

problem of equirequisite factors, 914;

rediscovery of, 914–15;

marginal physical vs value productivity, 915;

Austrians’ theory, 915–22;

problem of imputation, 916;

complementarity and substitutability, 917;

opportunity-cost theory, 917;

Marshall’s criticism of Jevons’ and Austrians’ performance, 920–24; Böhm-Bawerk’s discounted, 939;

Edgeworth on, 940, 1032n;

as discovery of calculus for economics, 956n;

social production functions, 915, 1030;

Smithies’ restrictions on production function, 1030–31;

Berry’s work, 1032n;

Marshall’s theory, 941–2, 996n, 1032–3, 1042–3;

the ‘exhaustion theorem,’ 1033–4;

linear homogeneity and Euler’s theorem, 1033n, 1039–45;

in Walras’ later work, 1034, 1035n;

Pareto’s criticism of, 1035, 1039;

definitions of and controversies over, 1038

See also Capital, Theories of;

Costs, Theories of;

Entrepreneur;

Interest, Theories of;

Profits;

Wages, Theories of

Division of Labor, in Plato, 56;

in Aristotle, 56;

in Smith, 187–8, 214;

in Petty, 214;

in international trade analysis of mercantilists, 373–6;

Schmoller’s theory of classes, 813

Dynamic Analysis, in Aristotle, 58;

Comte’s introduction of concept, 416–17;

Mill’s introduction into economics, 417, 563;

Sismondi’s, 494–5, 496;

elements in pre-19th century economics, 496;

period analysis, 496, 563;

Ricardo’s sequence analysis, 563–4;

role of ‘vision’ in, 570;

Wade’s endogeneous model of cycle, 743n;

Marshall pointing toward, 840, 1160;

lack of in neo-classical period, 920;

defined, 963, 1142–3, 1160;

contrasted with statics, 963;

cobweb analysis, 842n, 963n, 1143;

historical lag behind statics in all sciences, 964;

and evolutionary and non-evolutionary states, 964; and physical sciences’ concept, 965;

confusion over nature of, in neo-classical period, 966–7; Böhm-Bawerk on distinction between statics and, 967; dynamic equilibrium, 970;

Walras on, 973, 1002, 1021n;

importance of, 1143;

development of, 1146;

Pantaleoni’s and Pareto’s pointers, 1161;

need for to develop static theory, 1160–61;

macrodynamics, 1161–9;

corn-hog cycle, 1168;

shipbuilding cycle, 1169;

dynamization of Keynes, 1183–4

See also Business Cycle Analysis;

Business Cycle Theories;

Econometrics;

Macroanalysis

Econometrics, Verri, 178

In 17th and 18th centuries, 13–14, 209–49:

consultant administrators, 209;

‘political arithmetick,’ 210–15, 253;

Boisguillebert, 215–17;

Cantillon, 217–23;

Quesnay’s tableau économique, 239–43, 278, 391

Thünen as first to use calculus, 466–8;

Mangoldt on theory of international values, 504; Baxter’s income work, 832;

Bowley’s work, 832;

Marshall on, 840, 962;

Cheysson’s work on, 842n, 949n;

Pareto’s law, 859, 961;

Fisher on, 871–2, 961;

Moore’s importance in, 876–7, 961, 962;

Douglas’ Theory of Wages, 941, 1042;

failure of statisticians to use theory, 960, 962; Engels’ Law, 961;

Schultz’s work, 962;

production, cost, and supply functions, 962;

as alliance of theory and statistics, 1141;

new period in economic analysis, 1146

Macrodynamic models in, 1162–3, 1163–9:

Tinbergen’s work, 1162–3;

methods in, 1163;

Haavelmo and Frisch, 1163;