TAILIEUCHUNG - History of Economic Analysis part 26

History of Economic Analysis part 26. 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 212 thus raised we might call it Petty s problem which Ricardo tried to dodge by eliminating land see below Part III ch. 6 so as to be left with one factor only Cantillon tackles in Chapter 11 by the alternative expedient labor is reduced to land by the consideration that the labor du plus vil Esclave adulte vaut au moins .la quantité de terre that must be employed to provide for his needs. Or rather since accord-ing to Halley s tables about half the children died before reaching the age of 17 and also for other reasons it was roughly double that quantity. Other laborers get more than the plus vil Esclave but this is either because their labor costs more land to produce or because their remuneration is subject to risk. The figures on workmen s budgets that Cantillon held to justify this estimate were in the lost supplement but we must in any case credit Cantillon with having made the first important step in this particular field of research that was to develop considerably before the century was over. For the rest it is not necessary to enter here into criticism either of the land-labor theory of value itself if such it may be called or of the particular attempt to make it numerically operative. As far as this goes it must suffice to say that the latter is not what it seems to be that is complete nonsense and that success on this line is not out of the question at some distant future. Let us repeat however first that the really important thing is the message of econometric research that comes to us from this attempt the message that numerical calculations must be at the basis of any science however theoretical that is quantitative by nature and second that the arpents of land per year 1 arpent 330 sq. ft. played exactly the same role in Cantillon s analysis that days of labor played in Ricardo s. And let us add that we have here the positive kernel of Quesnay s theory of normal value his philosophies about the value-creating powers of .

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