The Paretian Tradition of Dynamic General Equilibrium in Italy's Interwar Period

The Paretian tradition has been one of the most important research strands in the interwar period in Italy. It included a small but strong group of economists, among them the notable Luigi Amoroso and Giulio La Volpe. The more ambitious project carried out by the Paretians was the dynamization of the theory of general equilibrium. In accordance with the main international research programs, also in Italy, the 1930s were the years of economic dynamics. Luigi Amoroso, following his scientific formation and emphasizing the analogies using physical sciences, in particular rational mechanics, proposed a view of economic dynamics based on the habits; La Volpe turned his attention to choices grounded in plans and predictions, that is, in the future. The Paretian approach to dynamics was one of the most original products of the Italian tradition during this period, at least in the field of pure theorizing, but, for the reasons that we will attempt to explore, it did not have a significant impact in the working out of economic dynamics in the post-war period.