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The Hicks-Morishima Approach Reconsidered:Another Look at the Interdependence of Several Markets

Author

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  • Yasuhiro Sakai

    (Faculty of Economics, Shiga University)

Abstract

This paper aims to shed some new light on the Hicks-Morishima approach to the interdependence of several markets. In spite of its rather simple and ambitious framework for the interdependence of several markets, it is quite unfortunate that this approach has been rather neglected in the academic circle. I suppose that there are several reasons for this. First, the traditional general equilibrium approach developed by Lionel W. McKenjie, Gerald Debreu and Kenetth W. Arrow exclusively works with the good space rather than the price space. In contrast, the Hicks-Morishima approach based on Hicks' classical bookValue and Capital exclusively operates on the price space, thus against the current main stream of economic theory. Next, the majority of economics readers are usually familiar with the straightforward notion of demand and supply curves, but not with the twisted concept of excess demand curves. It is one of my main purpose to mend such unfortunate tendency, presumably proceeding toward the establishment of a new grand system of social science. We can learn new lessons from old teachings.

Suggested Citation

  • Yasuhiro Sakai, 2019. "The Hicks-Morishima Approach Reconsidered:Another Look at the Interdependence of Several Markets," Discussion Papers CRR Discussion Paper Series A: General 36, Shiga University, Faculty of Economics,Center for Risk Research.
    • Handle: RePEc:shg:dpapea:36
    as

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    File URL: https://www.econ.shiga-u.ac.jp/risk/DPA36Sakai.pdf
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    References listed on IDEAS

    as
    1. Morishima, Michio, 1974. "Marx in the Light of Modern Economic Theory," Econometrica, Econometric Society, vol. 42(4), pages 611-632, July.
    2. Sakai, Yasuhiro, 1973. "An Axiomatic Approach to Input Demand Theory," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 735-752, October.
    3. Hicks, John, 1977. "Economic Perspectives: Further Essays on Money and Growth," OUP Catalogue, Oxford University Press, number 9780198284079.
    4. M. Morishima, 1953. "A Note on a Point in Value and Capital," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 21(3), pages 214-217.
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    More about this item

    Keywords

    J.R. Hicks・M. Morishima・Value and Capital・excess demand curves・general equilibrium analysis・comparative statics;

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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