TAILIEUCHUNG - History of Economic Analysis part 95

History of Economic Analysis part 95. At the time of his death in 1950, Joseph Schumpeter-one of the major figures in economics during the first half of the 20th century-was working on his monumental History of Economic Analysis. A complete history of humankind's theoretical efforts to understand economic phenomena from ancient Greece to the present, this book is an important contribution to the history of ideas as well as to economics. | History of economic analysis 902 but it did not die out Other approaches were also tried but none of them met with any great Second extensions of the concept of rent just discussed suggest themselves readily in view of the difficulty of drawing a logically tenable line between what objects are and what are not natural agents or which is only another way of expressing the same thing of agreeing on the defining characteristics of natural agents. Thus violating his original definition of rent income derived from the ownership of land and other free gifts of nature Principles p. 150 Marshall denied that mining royalties are Other writers were more impressed with the analogy. But he made no difficulty about the extension if indeed it can be called an extension at all of the concept of rent from rural to urban Much more important however was one of his most felicitous creations the concept of quasi-rent or income from an appliance for production already made by man that embodies the recognition of two facts that were particularly important in connection with the new theories of interest the fact that any price paid for the services of capital goods is closely analogous to the price for the services of natural agents and the fact that this analogy holds particularly for the short run and decreases with the increase in the length of the time to which a proposition is intended to Another class of extensions sprouted directly from Ricardian roots. A man who still persisted in seeing point in Ricardo s emphasis upon differential rent was likely to discover as Bailey had done before that such differentials were not confined to land. We have had occasion34 to notice Mill s Mangoldt s and Walker s interpretations of entrepreneurial gains as rents of differential ability. Marshall presented the general case for the latter concept though in my 29 s book on David Ricardos Grundrententheorie 1909 2nd ed. 1927 may be .

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