Oskar Lange and the influence of Walrasian theory during the Keynesian revolution
My paper examines how Lange integrated the Walrasian and the Keynesian ingredients in his research. I argue that his works proposed two kinds of macroeconomics. The first kind was IS-LM, but IS-LM interpreted as an aggregate version of Walras' general equilibrium model (Lange, 1938). The second kind was developed in Lange's 1944 book. There, macroeconomic became a subfield of stability analysis. The paper highlights Hicks' (1939) decisive influence on Lange. It shows that Value and Capital revealed to Lange how he could use the Walrasian framework to unveil the inherent instability of the capitalist system. This part of the paper help us assess Lange's achievements and his influence on the generation of Modigliani, Solow and Patinkin.
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- O. Lange, 1945. "The Scope and Method of Economics," Review of Economic Studies, Oxford University Press, vol. 13(1), pages 19-32.
- Robert W. Dimand, 2007. "Keynes, IS-LM, and the Marshallian Tradition," History of Political Economy, Duke University Press, vol. 39(1), pages 81-95, Spring.
- Goulven RUBIN, 2011.
"Hicks et l’économie de la dépression,"
Discussion Papers (REL - Recherches Economiques de Louvain)
2011043, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- O. Lange, 1935. "Marxian Economics and Modern Economic Theory," Review of Economic Studies, Oxford University Press, vol. 2(3), pages 189-201.
- Goulven Rubin, 2010.
"Don Patinkin's Ph.D. dissertation as the prehistory of disequilibrium theories,"
- Goulven Rubin, 2012. "Don Patinkin's PhD Dissertation as the Prehistory of Disequilibrium Theories," History of Political Economy, Duke University Press, vol. 44(2), pages 235-276, Summer.
- Hans Neisser, 1934. "General Overproduction: A Study of Say's Law of Markets," Journal of Political Economy, University of Chicago Press, vol. 42, pages 433.
- Michel, DE VROEY, 2005. "Involuntary Unemployment : the Elusive Quest for a Theory," Discussion Papers (ECON - Département des Sciences Economiques) 2005004, Université catholique de Louvain, Département des Sciences Economiques.
- De Vroey, Michel, 1997.
"The Marshallian Market and the Walrasian Economy. Two Incompatible Bedfellows?,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
1998004, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- De Vroey, Michel, 1999. "The Marshallian Market and the Walrasian Economy. Two Incompatible Bedfellows," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(3), pages 319-38, August.
- Goulven Rubin, 2005. "Patinkin and the Pigou effect: or how a Keynesian came to accept an anti-Keynesian argument," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 12(1), pages 47-72.
- Goulven Rubin, 2004.
"Patinkin on IS-LM: an Alternative to Modigliani,"
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