Marshall on equilibrium and time: a reconstruction
This paper's aim is to offer a reconstruction of the Marshallian conception of equilibrium and time. Its main features are as follows. First, I argue that the hallmark of this conception is to posit an interrelationship between two equilibrium concepts — market-day and normal equilibrium. I claim that they are part and parcel and cannot be analysed separately. Second, my reconstruction gives a central role to the market period. Third, I argue that the so-called short and long-period equilibrium concepts refer to the same unique concept of normal equilibrium. Fourth, I argue that Marshall's value theory admits the effective existence of disequilibrium states. A Marshallian disequilibrium refers to cases where market-day and normal values fail to coincide, this state of affairs going along, however, with market clearing. I also propose an alternative interpretation of Marshall's corn model wherein perfect information is considered the linchpin of achieving equilibrium. Finally, I argue that my reconstruction avoids a series of interpretative pitfalls.
Year of publication: |
2000
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Authors: | Vroey, Michel De |
Published in: |
The European Journal of the History of Economic Thought. - Taylor & Francis Journals, ISSN 0967-2567. - Vol. 7.2000, 2, p. 245-269
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Publisher: |
Taylor & Francis Journals |
Keywords: | Marshall Equilibrium Short And Long Period |
Saved in:
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