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