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On the Right Side for the Wrong Reason : Friedman on the Marshall-Walras divide

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Author Info
Michel, DE VROEY (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

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Abstract

The aim of this article is to assess FriedmanÕs claim, put forward in his 1949 article on the Marshallian demand curve, that there is a methodological divide between the Marshallian and Walrasian approaches. FriedmanÕs argument will be critically examined and compared with the views he expressed in other articles written around thesame time. My evaluation will lead to a mixed conclusion. Positively, Friedman must be hailed for having brought the Marshall-Walras divide to the forefront. In a more critical vein, I will suggest, first, that FriedmanÕs argumentation in the 1949 paper is definitely wanting. A better account of the differences between Marshall and Walras is to be found in his 1955 review of JaffŽÕs traslation of WalrasÕs ElŽments dÕŽconomie pure. Second, I will claim that FriedmanÕs real target in his 1949 article was imperfect competition theory ˆ la Chamberlin and Keynesianism ˆ la Lange, which he wrongly associated with Walrasian theory. Third, present-day proponents of the divide will be criticised for having naively echoed FriedmanÕs argumentation instead of having tried to improve it. The paper finishes with an outline of the criteria that should be used for giving te Marshall-Walras divide a stronger grounding.

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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2004015.

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Length: 34
Date of creation: 01 Apr 2004
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Handle: RePEc:ctl:louvir:2004015

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Related research
Keywords: Friedma; Marshall; Walras;

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Find related papers by JEL classification:
B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Michel De Vroey, 2003. "Perfect information à la Walras versus perfect information à la Marshall," Journal of Economic Methodology, Taylor and Francis Journals, vol. 10(4), pages 465-492, December. [Downloadable!] (restricted)
  2. Hahn, Frank, 1990. "John Hicks the Theorist," Economic Journal, Royal Economic Society, vol. 100(401), pages 539-49, June. [Downloadable!] (restricted)
  3. Leijonhufvud, Axel, 1984. "Hicks on Time and Money," Oxford Economic Papers, Oxford University Press, vol. 36(0), pages 26-46, Supplemen. [Downloadable!] (restricted)
  4. Grandmont, Jean-Michel, 1977. "Temporary General Equilibrium Theory," Econometrica, Econometric Society, vol. 45(3), pages 535-72, April. [Downloadable!] (restricted)
  5. De Vroey, Michel, 2001. "Price Rigidity and Market-Clearing: A Conceptual Clarification," Cambridge Journal of Economics, Oxford University Press, vol. 25(5), pages 639-55, September.
  6. Michel De Vroey, 2000. "Marshall on equilibrium and time: a reconstruction," European Journal of the History of Economic Thought, Taylor and Francis Journals, vol. 7(2), pages 245-269, June. [Downloadable!] (restricted)
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  1. Michel, DE VROEY, 2007. "Marshallian and Walrasian Theory, Complementary or Alternative Approaches ? The Views in Presence," Discussion Papers (ECON - Département des Sciences Economiques) 2007002, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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