JURG NIEHANS A History of Economic Theory Classic Contributions, 1720-1980 The Johns Hopkins University Press Baltimore and London
Preface and Acknowledgments 1 Prologue: Populating the Pantheon 1 Subject Matter. Perspective. Populating the Pantheon. Periodization. Organization. I The Classical Era (ca. 1680-1830) 2 The Leitmotiv of Classical Economics 9 3 Antecedents: Supply and Demand 14 Commonplace Economics. The Scholastics. Mercantilism. 4 Richard Cantillon 24 Life. The Essai. A Land Theory of Value. The "Three Rents." Classical Monetary Theory. Appendix. 5 Francois Quesnay 37 Life. Works. The Tableau Economique as a Circular How. The Tableau Economique as an Input-Output Table. The Tableau Economique as a Zigzag. Capital. Policy Maxims. Place in the History of Economics. 6 Money: The Emergence of the Classical Tradition 48 John Law. David Hume. Pehr Niclas Christiernin. 7 Adam Smith 60 Life. Works. Price. The Social Accounts. Labor and Wages. Land and Rent. Capital and Profit. The Invisible Hand. Liberalism and Mercantilism. 8 Production and Factor Supply 73 Jacques Turgot. James Anderson. Thomas Robert Malthus. John Rae. 9 David Ricardo 86 Life and Works. Value. The Invariable Measure of Value. Rent. Wages. Profits. Comparative Advantage. Monetary Theory. 10 Money: The Completion of the Classical Tradition 105 Henry Thornton. Jean-Baptiste Say. Nassau Senior. ix
11 Utility and Demand 118 Ferdinando Galiani and William Forster Lloyd. Daniel Bernoulli and Jeremy Bentham. John Stuart Mill. Jules Dupuit. 12 Karl Marx 137 Life. Works. The Dialectic Model of History. Capitalism. Value. Two-Sector Balanced Growth. Falling Profits and the Collapse of Capitalism. II The Marginalist Era (ca. 1830-1930) 13 The Leitmotiv of Marginalism 159 14 Johann Heinrich von Thünen 164 Life. Works. Rent and Factor Intensities for One Good. Resource Allocation and Location for Many Goods. Marginal Productivity. The Natural Wage. Capital and Interest. Thünen's Method. 15 Antoine Augustin Cournot 176 Life. Works. The Law of Demand. Monopoly. Taxation. Duopoly. Pure Competition. 16 Hermann Heinrich Gossen 187 Life. Work. Optimal Allocation of Time. Production. Exchange. Rent. Capital and Interest. Nationalization of Land. 17 William Stanley Jevons 197 Life. Works. Utility. Exchange. Capital and Interest. Mathematics. 18 L6on Walras 207 Life. Works. From Partial Equilibrium to General Equilibrium. The Tätonnement Process. Production and the Circular Flow. Investment and Interest. Money. Welfare. Place in the History of Economics. 19 The Viennese School 220 Carl Menger. Eugen von Böhm-Bawerk. Friedrich von Wieser. 20 Alfred Marshall 236 Life. Works. From General Equilibrium to Partial Equilibrium. Reciprocal Demand Curves. The Marshallian Cross. Elasticity of Demand. Period Analysis of Supply. The Falling Supply Curve and Externalities. VI
21 Knut Wicksell 247 Life. Works. Marginal Productivity Theory of Distribution. Solving the Exhaustion Problem. The Capital Paradigm. The Cumulative Process. 22 Vilfredo Pareto 259 Life. Works. Pareto's Law of Income Distribution. Ordinal Utility. Pareto Optimality. Comparative Statics of Demand. 23 Irving Fisher 267 Life. Works. Interdependent Goods. Interest Parity and Expectations. The Rate of Interest. The Quantity Theory of Money. 24 Exchange and Prices 279 Francis Ysidro Edgeworth. Rudolf Auspitz and Richard Lieben. Wilhelm Launhardt. Eugen Slutsky. Edward Chamberlin. Joan Robinson. Ill The Era of Economic Models (since about 1930) 25 The Leitmotiv of the Model-Building Era 313 26 Welfare 318 Arthur Cecil Pigou. Frank Ramsey. Abba Lerner. Harold Hotelling. James Meade. 27 John Maynard Keynes 345 Life. Principal Economic Works. Wage Rigidity. Effective Demand. The Multiplier. Liquidity Preference. The Futility of Wage Reductions. Stabilization Policy. The "Keynesian Revolution." 28 John Hicks 356 Life. Works. Production. Composite Goods. Comparative Statics and Stability. Period Dynamics and the Term Structure. Place in the History of Economics. 29 The Planners 372 Ragnar Frisch. Jan Tinbergen. Wassily Leontief. 30 John von Neumann 392 Life. Works. The Theory of Games. The Existence of Growth Equilibrium. Cardinal Utility. 31 Tjalling Koopmans 408 Life. Works. Econometrics. Linear Programming. Efficient Production. Place in the History of Economics
32 Paul Samuelson 420 Life. Works. Revealed Preference. Factor Price Equalization. The Transfer Problem. The Correspondence Principle. Nonsubstitution. Public Goods. The Turnpike. Overlapping Generations. Randomness of Speculative Prices. Place in the History of Economics. 33 Economic Growth 444 Joseph Schumpeter. Roy Harrod. Robert Solow. The Golden Rule. 34 Monetary Macroeconomics: Neoclassical Synthesis 466 Lloyd Metzler. Franco Modigliani. James Tobin. 35 Kenneth Arrow 480 Life. Works. Social Choice. The Welfare Theorems. Arrow- Debreu Equilibrium. Contingent Claims and Insurance. Health Economics. 36 Monetary Macroeconomics: Policy Rules 498 Milton Friedman. John Muth. Robert Lucas 37 Epilogue: The Dynamics of Scientific Progress 516 The Driving Forces. Responses. Success and Failure. References 535 Author Index 563 Subject Index 571 viii