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The Relevance of the Marshallian Concept of Normality in Interior and in Inertial Dynamics as Revisited by G. SHACKLE and J. KORNAI

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  • Mehrdad Vahabi

    (ERASME - Recherche et analyse des sociétés Maghreb-Europe - UP8 - Université Paris 8 Vincennes-Saint-Denis)

Abstract

This study endeavours to explicate the relevance of the Marshallian concept of normal in the evolution of supply curves and the price mechanism in time. This concept is based on the contradictory or at least ambiguous combination of an ex ante perspective of expectation formation and an ex post inertial dynamics. We first explore the ex ante side of the contradiction by drawing upon the writings of G. Shackle. Subsequently, we examine J. Kornai's conception of the normal state as system-specific. We identify the relationship between normality and the co-ordination mechanism in Kornai's ex post approach which may be regarded as an alternative to Shackle's solution. Finally, the pertinence of the Marshallian concept of normal will be demonstrated as will its divergent developments by Shackle and Kornai. This leads us to the conclusion that a further development of the concept is required in order to reconcile both ex ante and ex post approaches which might be based on recent evolutionary analysis.

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  • Mehrdad Vahabi, 1998. "The Relevance of the Marshallian Concept of Normality in Interior and in Inertial Dynamics as Revisited by G. SHACKLE and J. KORNAI," Post-Print hal-00629181, HAL.
    • Handle: RePEc:hal:journl:hal-00629181
    Note: View the original document on HAL open archive server: https://hal.science/hal-00629181
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    Cited by:

    1. Vahabi, Mehrdad, 2003. "La contrainte budgétaire lâche et la théorie économique [Soft Budget Constraint and Economic Theory]," MPRA Paper 17651, University Library of Munich, Germany.
    2. Mehrdad Vahabi, 2021. "Socialism and Kornai’s revolutionary perspective," Public Choice, Springer, vol. 187(1), pages 37-54, April.
    3. Mehrdad Vahabi, 2018. "János Kornai and General Equilibrium Theory," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 68(supplemen), pages 27-52, January.
    4. Mehrdad Vahabi, 2006. "Normal value," Chapters, in: Tiziano Raffaelli & Giacomo Becattini & Marco Dardi (ed.), The Elgar Companion to Alfred Marshall, chapter 36, pages 273-280, Edward Elgar Publishing.
    5. Mehrdad Vahabi, 1999. "From Walrasian General Equilibrium to Incomplete Contracts: Making Sense of Institutions," Post-Print halshs-03704424, HAL.
    6. Mehrdad Vahabi, 2001. "The Soft Budget Constraint: A Theoretical Clarification," Post-Print hal-00629160, HAL.
    7. Mehrdad Vahabi, 2021. "Introduction: a special issue in honoring Janos Kornai," Public Choice, Springer, vol. 187(1), pages 1-13, April.
    8. Mehrdad Vahabi, 2022. "In Janos Kornai’s memory," Public Choice, Springer, vol. 190(3), pages 265-271, March.
    9. Vahabi, Mehrdad, 1997. "De l’économie de la pénurie à l’économie politique du communisme. Sur l’évolution récente de la pensée économique de Janos Kornai : 1980-1996 [Economics of Shortage and Political Economy of Communi," MPRA Paper 80026, University Library of Munich, Germany, revised 1997.
    10. Vahabi, Mehrdad, 2002. "The Soft Budget Constraint: An Institutionalist Approach," MPRA Paper 17649, University Library of Munich, Germany.

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