History of Economic Analysis part 129 pdf

Harmonism, Cantillon and, 234; Quesnay, 234; theory of classes, 440; Bastiat on, 500, 553–4; in Carey, 516, 553–4 Hedonism, Epicurus, 66; and utilitarianism, 66; and 18th-century English moralists, 129–31; in Beccaria, 180; in Quesnay, 233; in marginal utility theorists, 887–8, 1056. See also Utilitarianism Historical School of Economics, on natural-law economics, 111–13; criticism of classical English economists, 402; and Comte, 417–18; and historical school of jurisprudence, 423; older, 504, 507–8, 808–9; List and, 505; defined, 507; on Mill’s methodological position, 538n; alliance of economcis and historiography, 781–2; and decline of theory in Germany, 804; articles of faith, 807, 808; historical method, 807–8; younger, 809–14; Methodenstreit, see Methodology; youngest, 815–20; influence outside Germany, 819–20; opposition to marginalist revolution, 954 Historical School of Jurisprudence, 26n, 141n, 423–4, 426–7 Historiography, 424–6; Kulturgeschichte, 427; in neo-classical period, 781–6, 820 Historism, new interest in 1870, 753, 772–3; in philosophy, 775; in economics, 807–24 History, Philosophy of, 134–7, 785–6 Hoarding, in Boisguillebert, 216, 285–6, 317; in Quesnay, 235; in monetary analysis, 280; in Galiani, 317; Say’s failure to consider, 619, 620; Mill on, 620, 622, 705; Keynes and Mill contrasted, 622 In neo-classical analysis, 1087–8; Marshall’s law of, 1087; Mises on, 1087; Kemmerer on, 1087, 1098, 1100; Marshall and Fisher on, 1087–8; Hobson on, 1088. Subject index 1242 See also Liquidity Preference; Money, Velocity of Humanists, see Scholasticism Hypotheses, 576–7 Ideal Types, see Methodology Idealogy, neutrality of in science, 10, 41–5; ‘philosophy’ in economics, 30–32; idealogical bias in economic analysis, 34–40, 657n, 675n, 895–6; Marx’s bias, 35–8, 385, 439, 440; special pleading and value judgments, 37–8, 154; of bureaucracies, 37n; in Smith, 38, 265n; in Aristotle, 59–60; in Quesnay, 232–3; in early wage analyses, 267n; and monetary analysis, 282n; crystallized, effects on analysis, 460n; and origins of Malthus’ population theory, 578–9; bias in biological schools of sociology, 788; bias in economists’ treatment of Nature vs. Nurture, 790 Imputation Theory, in Barbon, 330; and demand for labor, 644; Wieser’s term, 915; in Crusoe economy, 915; in Austrians, 915–17; of wages, 942 Income Analysis, in Petty, 213; in Cantillon, 221; in Quesnay, 213, 235, 240–43, 287–8; in Carey and others, 267; in real analysis, 277; and monetary analysis, 278–80, 280–82; in Becher, 283; in Boisguillebert, 284–5; Briscoe and equation of exchange, 314; in mercantilists, 348, 349; in Gervaise, 366; in Malthus and Marshall, 483; Lauderdale on debt redemption, 487–8; Sismondi’s dynamics, 495; Storch’s venture into, 502; Baxter’s estimates, 522; Wells’ estimates, 524n; Say’s analysis, 615–21; in Mill, 621–2, 704–5, 711; in classical writers, 627; Tooke’s analysis, 709–10; Thorn ton’s analysis, 723–4; in Ricardo, 724; variations of, classical theory of international finance, 733, 734; Subject index 1243 Fisher’s accounting, 872; Keynes’ analysis, Cournot’s anticipation of, 960; Walrasian system as, 999; in neo-classical period, 1117; reasons for, 1143; dynamic, Hansen-Samuelson equation, 1161. See also Keynesian System Income Concepts, Graslin, 175; Petty’s failure to define, 213; in Quesnay, 241; real income, 277n; beginnings of discussion, 627; ‘wealth’ as income in classical writers, 627–8; gross national product and Smith, 628; national income and Smith, 628; Ricardo, 628n; Hermann-Schmoller definition, 628; productive vs. unproductive labor controversy, 192n, 628–31; controversy over, 898n Increasing Costs, Hadley’s definition, 866; and decreasing returns, 1045n Increasing Returns, and populationist theories, 258; Serra’s definition for manufacturing, 258–9; in agriculture, 259; Smith on, 259; historical, 262–3; Carey on United States conditions, 517–18; Senior on, in manufactures, 585; Edgeworth’s work, 585, 1037–8; in Böhm-Bawerk, 587n, 588n, 905; and decreasing costs, 1045n; and equilibrium, 1045–8; Sraffa’s work, 1047–8. See also Decreasing Costs Index Numbers, in classical economics, 526, 701; Newmarch’s failure to use, 520n; Edgeworth’s work on, 831, 961n, 1092, 1093; Fisher’s work on, 871, 1092, 1093; measure of value of money, 1089; Austrians’ distrust of, 1089 Approach to value of money, 1091–5: developments in neo-classical period, 1091; Walsh’s work, 1092; Mitchell’s work, 1092; Jevons’ work, 1093; Laspeyres, 1093; Marshall and chain system, 1093; Haberler, Divisia, Keynes, 1094–5. See also General Price Level Indifference Curve Analysis, Beccaria and, 179; Edgeworth’s contributions, 831, 1064–5; Cheysson’s analysis, 842n; Subject index 1244 Pareto and, 859, 860; Fisher’s development of, 872, 1065–6; use of to analyze bilateral monopoly, 984; development of, 1064–6; collective, 1066 Individualism, 85–6, 92, 429, 888–9 Industrial Revolution, 150, 252–3, 693, 712–13 Infant-Industry Argument, see Protectionism Input-Output Analysis, 1021n Institutionalism, and historical school, 431n, 507, 820; Sombart and, 818; Hobson’s link with, 823n; and social science movement, 864; compatability of theory of epoch with, 875; opposition to marginalist revolution, 954 Intensive Margin, see Diminishing Returns Interdependence, General, see Equilibrium, General Economic; Walrasian System Interest, Rate of, in macroeconomic systems, 278n; in Cantillon, 319; desire for lower in 18th century, 328; low rate and prosperity, 328; in Ricardo, 653–4; stabilization of, 1077 Behavior through time, theories of: reasons for historical fall, 651; Marx’s theory, 652–4; West-Ricardo theory, 476, 553–4, 570–72, 652–4; Mill, 654, 662; productivity theorists on, 658; Smith’s theory, 658; abstinence theory on, 662 Interest, Theories of, in Aristotle, 64–5, 105n; in Aquinas, 93–4, 105n; in Cantillon, 319, 720n; beginnings in later scholasticism, 101–6, 328–9, 646, 648, 720; in Smith, 193, 331, 333–4, 647, 648–9, 654, 658, 660, 720; in Petty, 215; in Quesnay, 234; interest and profits, 327–8, 330–32, 645–7, 893, 896, 924, 925; in 17th and 18th centuries, 329; Barbon’s theory, 329–32, 647, 648, 720, 924–5; in Turgot, 332–4, 648; Ricardo’s, 332, 647–9, 652, 653n, 660, 1118; Senior as improver of, 484, 659; Say’s, 654; Fisher’s, 647, 721n, 847, 927, 930–31, 932; Thornton’s introduction of into monetary process, 706–7, 720–24; money and real rates, 329, 709n, 719, 1083, 1118; Wicksell’s work in, 331, 649n, 709n, 720, 863, 929n, 930, 1099, 1118, 1119n; marginal utility theory, and, 920; Pareto’s neglect of reasons for existence, 925; Subject index 1245 Walras’ theory, see Walrasian System; Keynes’s theory, see Keynesian System; Liquidity Preference Abstinence theory: in Ricardo, 649n, 660; in Mill, 654n, 660; defined, 659; and productivity theory, 659; Marx on, 660–62; Böhm-Bawerk’s analysis of, 659, 926–7; Marshall and, 659, 926; as explanation of net return, 926; in Carver, 926; and time-preference, 926n. See also Capital, Theories of Advance theory, see Capital, Theories of Bargaining-power theories, 926–7 Böhm-Bawerk’s premium theory, 901n, 927–32, see also Capital, Theories of: and profits, 331, 647; Rae and, 469, 846; one element in contribution, 846; Menger on future pleasures, 846; abstinence and time preference, 926n; a real analysis, 928; interest as an agio, 928; three reasons for interest, 928–30; failure of economists to accept, 930; simplified version of, 930–31; not a productivity theory, 931–2 Exploitation theory: Smith’s lead, 648–9; Ricardo and, 649, 653n; Ricardian socialists, 649; Marx’s theory outlined, 649–50, see also Marxist System; and residual theory of interest, 653n; antipodal to productivity theories, 655n; and Böhm-Bawerk, 925–6 Fructification theory, 332n; impatience theory, 872, 930–32; loanable funds theory, 329, 641n, 721; marginal product theory, 467, 656n, 658n, see also Distribution, Theories of; mark-up theory, 657n Productivity theories: in Ricardo, 649n; inability to explain interest, 648; restriction to technological capital, 655; antipodal to exploitation theory, 655n; and permanent net return to owners, 655–6; Lauderdale’s first explicit, 656; Malthus’, 656; Subject index 1246 James Mill and McCulloch on, 657; Smith’s lack of, 658; and abstinence theory, 659; Böhm-Bawerk on, 655–6, 925; Marshall’s revival, 659, 926; and Böhm-Bawerk’s premium theory, 931–2 Residual theory, in Ricardo, 649n, 652–3 Use theory, 656, 925–6 International Monetary Fund, 1077 International Trade Analysis, in later mercantilists, 367–76; on protectionism, 367–8; commodities seek best market, 368–9; Barbon on equilibrium, 369; tendency toward freer trade, 370–72; territorial division of labor, 373–6; in Smith, 367, 374, 376, 607, 733; Edgeworth’s work, 504, 609 In classical economics, non-monetary aspects, 605–15, 733: novelties, 605; theory of international values, 605–7; comparative costs, 373–4, 490, 607–8, 612; theorem of reciprocal demand, 608–9, 612; welfare aspects of, 609–11; primitiveness of, 613–14; failure to ‘prove’ free trade, 615; Mill’s capital limit proposition, 640n Monetary aspects of, 731–8: Mill’s achievement, 710, 731–2; gold standard, 732; commodity-trade theory of international finance, see Gold Mechanism; Cournot’s algebra of exchanges, 959; Marshall on, 351, 374, 609, 1106; mechanism of international payments, controversy on, 1107. See also Foreign Exchange; Free Trade; Gold Mechanism; Gold Standard Interpersonal Comparisons, 40, 1071 Investment, in Smith, 191–3, 324–5; in Turgot, 325–6; in Mill, 325, 572, 573, 620–21, 641, 642, 643, 659, 724–5, 747; lagless conversion of savings to, 325–6, 641–2; public debt and, 327; in Malthus, 482, 641n; in Keynes, see Keynesian System; in Marx, see Marxist System; in Walras, see Walrasian System. See also Savings Iso-Quants, 917n, 1043–4 Joint-Stock Companies, 400 Subject index 1247 Jurisprudence, 26n, 67–8, 202. See also Historical School of Jurisprudence; Roman Law Kameralism, see Consultant Administrators Keynesian System (General Theory), role of vision in, 41–2; equilibrium of aggregates, 243; short-run nature of, 280n; Storch as forerunner, 502; Say’s Law, 615–16, 619, 622, 624; changes in money wage rates, 671; and Tooke, 710; underconsumption thesis, 750n; attempts to Marxify, 885; elimination of labor disutility, 923, 1057; as partial and income analysis, 960, 997, 1143; classical frictional unemployment, 974n; and Walrasian equilibrium, 1012n; identity of savings and investment, 1016–17; social production functions, 1030; as special case of Walrasian system, 1082; Swedish anticipations of, 1085; lack of index numbers in, 1094n; cash-balance approach and, 1109; Hobson and, 1130; elimination of price level, 1144; theory of saving, 1144, 1176; reasons for success of, 1144; Kahn’s role, 1172 Analytic apparatus of General Theory, 278n, 1174–9: as essentially static, 1174; short-run nature of, 280n, 1174; constancy of plant and equipment, 1144, 1174–5; real values in wage units, 1175; rigid money wages, 1144, 1175; five endogeneous variables, 1144, 1175–6; elements of quantity theory in, 1175n; aggregate demand and supply curves, 623–4, 1176n; effective demand, 1176n; investment function, 278n, 1017–18, 1049, 1144, 1177; liquidity preference, 278n, 331, 372n, 720, 931n, 1023n, 1088, 1119, 1178–9; consumption function, 278n, 1059n, 1117, 1176–7, 1182; problem of equilibrium in, 1180n; impact of, 1180–84; dynamization of, 1144, 1183–4. See also Hoarding; Income Analysis; Liquidity Preference; Marginal Efficiency of Capital; Multiplier; Secular Stagnation Thesis Subject index 1248 Labor Economics, in neo-classical period, 946–8 Labor Legislation, 401–2, 494, 768 Labor, Productive vs. Unproductive, 192n, 628–31 Laical Intellectuals, 79–82, 116–22 Laicist Radicals, 528, 772–80 Laissez-Faire, in scholastics, 99; Smith and, 172; Justi on, 171–2; Beccaria on, 180; in Quesnay and Physiocrats, 230–31; Gournay’s phrase, 244n; Becher and, 284n; Boisguillebert and, 284; and free trade, 371–2; in 19th-century England, 395; Gladstonian finance and, 403; gold standard and, 405–6; Sismondi and, 493–4; Bastiat, 500; classical economists on, 531, 544, 548; Say on, 618; currency and banking schools as adherents, 727 In neo-classical period, 761–73: socialism as a product of, 763; hostile political forces, 761–5; attacks of economists on, 765–6; outlook for in 1870, 766–7; regulatory acts occur, 767–8; labor reforms, 768; fiscal policy, 769–71; violation of principles, 769–70; monetary policy, 770–71; Spencer and, 773; and economics of period, 801; Paris group, 765, 841–3; Pareto, Newcomb, Sumner, 860, 866; and political individualism, 888. See also Liberalism, Economic; Liberalism, Political; Manchesterism Land Banks, 294–6, 321–2 Large Scale Enterprise, 150, 761 Law of Cost, 93 Liberalism, Economic, meaning of, 8, 394; and Quesnay, 232; in autocratic states, 394n; and development of 19th century, 396; free trade in England, 397–9; nationalism as ally of, 399; an agrarian reform, 399–400; Subject index 1249 labor legislation and, 401; Gladstone, 403; gold standard and, 405–6; materialistic rationalism in, 408; Say and, 492; Ferrara, 513 Defeat of, in neo-classical period, 761–6: attitude of bureaucracy to, 763–4; failure of ‘new middle class’ to embrace, 763–4; allocation of control to state, 763–4, 767–8; attacks of economists on, 765–6; Paris group, 765, 841–3; outlook for in 1870, 766–7; anti-Gladstonian liberalism, 767–8; fiscal policy, 769–71; monetary policy, 770–71; and laicist liberalism in philosophy, 772–80; Spencer, 773; Pareto’s variety of, 860. See also Laissez-Faire; Liberalism, Political Liberalism, Political, defined, 8, 394; philosophical radicals and, 395; nationalism as ally, 399; Ferrara, 513 Defeat of, in neo-classical period, 761–6: loss of hold on electorate, 761; decline in England, 761; orthodox socialism, 761; bourgeois radicalism, see Radicalism, Bourgeois; ‘new middle class’ and, 763–4; Christian socialism, 764–5; economists’ attacks on, 765–6; Paris group, 765, 841–3; outlook for in 1870, 766–7; laicist, in philosophy, 772–80; political democracy, 772; Spencer on, 773; Pareto on, 860; and marginal utility theory, 888. See also Laissez-Faire; Liberalism, Economic Liquidity Preference, in aggregative analysis, 278n; Thornton’s statement of, 720; Böhm-Bawerk’s interest theory and, 931n; treatment of in neo-classical period, 1087–8; feature constituting theory of, 1088; introduction due to Keynes, 1088; novelty in Keynes’s, 1144; as a determinant of income, 1176, 1178–9; elements of real interest theory in, 1178–9. See also Hoarding Subject index 1250 Location Theory, in Petty, 214n; in Cantillon, 219; in Smith, 264; Thünen’s Isolierte Staat, 466; West and extensive margin, 586; distance in classical international trade theory, 606n; location as differential advantage of land, 674–5; Ricardo, Mill, Edgeworth on urban rent, 675n, 935n; Cheysson’s work, 842n; and oligopoly theory, 981–2 Logic, 27, 448–54 Luxury, 324n Macroanalysis, and monetary analysis, 278–80; and microanalysis, 279; aggregates and supply-and-demand analysis, 617–18, 623–4; wage-fund theory and modem aggregative analysis, 662; Cournot’s advocacy of, 960; income elasticity in, 993; Marshall and, 997; in Quesnay, Ricardo, Böhm-Bawerk, Wicksell, 997–8; equation of exchange and quantity theory as, 1095–6; reasons for, 1143 Macrodynamics, 1161–8; reasons for success of, 1161; Hansen-Samuelson equation, 1161; Frisch’s schema, 1162; Hayek’s non-mathematical work, 1162; and statistics, 1162; econometric use of, 1162; and business cycle research, 1163–9; Keynes system as a molder of, 1183–4; Keynes and, see Keynesian System. See also Tableau économique Malthusian Theory of Population, Ortes and, 178; Beccaria’s theory of population, 180; in Smith, 191; in Cantillon, 219; in Quesnay, 234; ‘positive checks’ in mercantilism, 251n; reasons for emergence, 252; emergence of, 254–8; as theory of poverty, 257; optimum population, 258, 582, 890n; increasing returns and, 258–9; and minimum-of-existence theory of wages, 266; as beginning of new economics period, 379; effect on Darwin, 445–6; Carey on, 517; adoption of by Ricardo, 569, 653; Mill on, 571 Subject index 1251 . Utilitarianism Historical School of Economics, on natural-law economics, 111–13; criticism of classical English economists, 402; and Comte, 417–18; and historical school of jurisprudence, 423; older,. monetary analysis, 282n; crystallized, effects on analysis, 460n; and origins of Malthus’ population theory, 578–9; bias in biological schools of sociology, 788; bias in economists’ treatment of. Say’s analysis, 615–21; in Mill, 621–2, 704–5, 711; in classical writers, 627; Tooke’s analysis, 709–10; Thorn ton’s analysis, 723–4; in Ricardo, 724; variations of, classical theory of international