Hicks on Walrasian equilibrium in the 1930s and beyond
AbstractAfter many explorations in different directions during the early 1930s, in 1934 Hicks ends up by advocating an interpretation of Walrasian equilibrium and capital theory along stationary lines, but the suggested interpretation is at variance with the view endorsed by the last Walras and by Pareto at the turn of the century. In the second half of the 1930s, during the long gestation of Value and Capital (VC), Hicks’s ideas on equilibrium and capital progressively change and mature, to eventually culminate, with the publication of VC in 1939, in the rediscovery of a method of analysis and an equilibrium concept, Hicks’s temporary equilibrium, that are substantially similar to the method of analysis and equilibrium concept put forward by the last Walras and by Pareto about forty years before. Yet this direct link with the Walrasian tradition is not overtly recognised by Hicks in VC: in particular, the essentially Walrasian character of the equilibration process supporting Hicks’s temporary equilibrium concept is carefully disguised under Marshallian garments. This fact will not only delay Hicks’s own recognition of the limits of the VC approach, which will start to be questioned by him only in the mid-1950s, but will also concur to spreading unsubstantiated ideas about the origins and theoretical foundations of the neo-Walrasian research programme. The aim of this paper is to clarify the theoretical reasons behind the winding path followed by Hicks over the 1930s, especially as far as the Walrasian conception of equilibrium and equilibration is concerned, and to identify the roots of Hicks’s ambiguity about the theoretical ancestry of the VC model in his previous intellectual history.
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Bibliographic InfoPaper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2010-39.
Date of creation: 03 Dec 2010
Date of revision:
Hicks; Walras; Marshall; equilibrium; equilibration; temporary equilibrium.;
Other versions of this item:
- Franco Donzelli, 2010. "Hicks on Walrasian Equilibrium in the 1930s and Beyond," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1107, Universitá degli Studi di Milano.
- B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Stockholm School)
- B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
- B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
- D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
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- Michel De Vroey & Pedro Garcia Duarte, 2012. "In Search of Lost Time: The Neoclassical Synthesis," Working Papers, Department of Economics 2012_07, University of São Paulo (FEA-USP).
- Pedro Garcia Duarte & Michel De Vroey, 2014. "In Search Of Lost Time: The Neoclassicalsynthesis," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 005, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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