History of Economic Analysis part 130 pot

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; Subject index 1252 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; Subject index 1253 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; Subject index 1254 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; Subject index 1255 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 Subject index 1256 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; Subject index 1257 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; Subject index 1258 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; Subject index 1259 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 Subject index 1260 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; Subject index 1261 . 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,. 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. 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