The temporary equilibrium method: Hicks against Hicks
AbstractHicks is renowned for having introduced the temporary equilibrium framework in his book Value and Capital. Subsequently, however, he partially recanted this framework by rejecting the market clearing idea while still keeping the week device. The aim of this paper is to assess whether this change was right. My answer will be broadly negative. To make my point, I will ponder on the meaning and implications of the week device, assess the validity of Hicks' claim that slow adjustment can cause market rationing, examine his claim that the possibility of market clearing depends on the prevailing market form and, finally, assess his twofold filiations towards Marshall and Walras.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The European Journal of the History of Economic Thought.
Volume (Year): 13 (2006)
Issue (Month): 2 ()
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Other versions of this item:
- Michel, DE VROEY, 2004. "The temporary equilibrium method : Hicks against Hicks," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004014, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
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