TAILIEUCHUNG - History of Economic Analysis part 106

History of Economic Analysis part 106. 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 1012 most to do Essays in Biography pp. 225-6 . This was I think because of Marshall s aversion to going through with pure analytic schemata and to his bent toward misplaced realism. He insisted on including internal and external economies in his industrial supply schedules though he noticed the objection to this Principles p. 514n. I suppose in order to make these more realistic in spite of the fact that he thereby destroyed their reversibility and rendered them useless for the purposes of static theory they really represent pieces of economic history in the form of He thus blurred the clarifying distinctions between falling cost curves and downward shifts of cost curves and between costs that fall while production functions stay put and costs that fall in consequence of changes in production At any rate it is understandable that both the leads given by Marshall and the loose ends left by him must have started discussion in any environment that took any interest at all in the foundations of economic theory. The only thing to wonder at is that this discussion took so long to burst into print and to present results to the scientific public at large. For instance Professor Viner s famous paper on Cost Curves and Supply Curves that starting from Marshall s analysis successfully cleared up a large part of the ground appeared only in September 1931 Zeitschrift für Nationalökonomie Professor s paper on Increasing Returns and Economic Progress only in December 1928 Economic Journal . We shall group our brief comments around the topic Increasing Returns and Equilibrium and even so shall have to confine ourselves to but few of the many valuable contributions that ought in fairness to be 51 It is only from the standpoint of static theory that Professor Stigler s strictures on Marshall s concepts of external economies are fully justified op. cit. pp. 68 et seq. . Both internal and external economies

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