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Faccarello G., Kurz H.-D.. Handbook on the history of economic analysis. Volume III, Developments in major fields of economics. Edward Elgar,2016. — 659 p. 2016

The aim of this Handbook on the History of Economic Analysis is to provide a succinct overview of the development of economics since its systematic inception up until today. The Handbook has three volumes. Volume I deals with Great Economists since Petty and Boisguilbert. It provides short essays in biography of some of the most important economists in what is known as the “Western World”. Volume II deals with Schools of Thought in Economics. A school is defined in terms of the analytical method(s) used, the approach chosen in tackling the problem(s) at hand, the results derived and the policy conclusions inferred. Volume III contains summary accounts of Developments in Major Fields of Economics reflecting the division of labour within the discipline.

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Contents
Contributors
General introduction
The past is never dead. It’s not even past. (William Faulkner)
The aim of this Handbook on the History of Economic Analysis is to provide a succinct overview of the development of economics since its systematic inceptionup until today.
Balance of payments and exchange rates
This entry briefly covers the analysis of the balance of payments and exchange rates from mercantilism to the 1980s’ monetary approach to the balance of payments.
Equilibrium versus Balance of Trade Surplus
Balance of Trade or Balance of Payments?
Balance of payments approach, exchange rate and gold points
Banking and interest rates
Balance of trade approach and exchange rate
The Failure of the Gold Standard
Why and how to manage the gold standard?
Colonialism and the gold exchange standard
Purchasing power parity
The Open Macroeconomic Approach
Price level, exchange rate, income and interest rate
Keynesian and monetarist perspectives
See also:
References and further reading
Behavioural and cognitive economics
Introduction
Behavioural Economics
Cognitive Economics
The Ambiguities between Behavioural and Cognitive Economics
Old behavioural economics and cognitive economics
New behavioural economics and cognitive economics
Concluding Remarks
See also:
References and further reading
Growth and Cycles: From Schumpeter to Goodwin
Innovations as the impulse of growth and business cycles
Harrod’s project
Kalecki and the problem of trend and cycle
Kaldor’s non-linear trade cycle theory
Goodwin’s growth cycle
Modern post-Keynesian developments: growth, instability and cycles
New Classical Approach to Growth-Cycles Interactions)
Real business cycles: cycles interpreted as random walk
From business cycles to growth
Conclusions
See also:
References and further reading
Capital Theory in the Surplus Approach
The classical or surplus approach starts with Petty, Cantillon and Quesnay, is domi­nant up to the 1830s,
Adam Smith
Ricardo
Marx
Dmitriev and Bortkiewicz
Sraffa and von Neumann
Choice of techniques
The Marginalist Approach to Capital
Comparison with the surplusapproach
Two problems with capital
The direct factor substitution mechanism: from Thunen to Marshall
The Austrian approach: Bohm-Bawerk and Wicksell
The imputation approach: Menger, Wieser, Walras
From the 1900s to the 1940s: disagreements and uncertainties
Hayek, Lindahl, Hicks and neo-Walrasian equilibria
The Cambridge capital controversy
Recent trends: a paradox
See also:
References and further reading
Only through the principle of competition has political economy any pretension to the charac­ter of a science. So far as rents, profits, wages, and prices are determined by competition, laws may be assigned for them.
Competition as Rivalry in a Race
Competition as a Specific Market Structure
Competition as a Discovery Procedure
From Competition Theory to Competition Policy: Pugnacity or Complacency?
See also:
References and further reading
Corporatism is probably the most common system of economic organisation in both the Eastern and Western worlds.
Definition
Historical Notes
Corporatism in the 1930s and 1940s
Political corporatism
Contemporary Corporatism
See also:
References and further reading
The history of development economics is as old as that of economics itself, with contri­butions ranging back to the mercantilists, the Physiocrats and the classical economists.
Precursors of Development Economics
Low Level Equilibria, Dualism and Sectoral Interaction
Structuralism, Import Substitution and State-Led Development
Challenges to “Old” Development Economics
New Directions in Development Economics
Conclusion
See also:
References and further reading
Econometrics
Notwithstanding a few more general perspectives on the history of econometrics (Darnell 1984; Morgan 1990; Qin 1993; Hendry and Morgan 1995; Morgan and Qin 2001; Gilbert and Qin 2006; Louςa 2007),
A History of Econometric Values
The Keynes-Tinbergen debate
The measurement-without-theory debate
The science or alchemy debate
A History of Econometric Metaphysics and their Paradigms
Further Reading
See also:
References and further reading
“Economic dynamics” is a large topic. In the space allotted here it is impossible to fully cover it. So, I shall begin by clarifying what will not be covered in this entry.
The Early History of Macroeconomic Fluctuation Models
Haberler’s Taxonomy of Business Cycle Models in the Early Twentieth Century
The Question of Periodicity
Endogenous Irregular Fluctuations
Where Do We Stand Now?
See also:
References and further reading
Thunen and Land Use Theory
The location of agricultural activities
Urban economics
The Nature of Competition in Space
The spatial impossibility theorem
Spatial competition theory
New Economic Geography
The core-periphery structure
The bell-shaped curve and regional growth
Concluding Remarks
See also:
References and further reading
Economic sociology is the study of economic activity considered as a set of social events related to other dimensions of social life, such as family, gender, morals, law, and poli­tics.
Before 1870
The ‘Great Decades’: 1890-1940
Lost Decades
The Rise of “New Economic Sociology”
Conclusion
See also:
References and further reading
The man of system... is apt to be very wise in his own conceit; and is often so enamoured with the supposed beauty of his own ideal plan of government, that he cannot suffer the smallest deviation from any part of it.
Neoclassical as Hobbesian Economics
The homo aconomicus in Hobbes
Rationality of strategists
Mindful strategists
Mindless strategists
Towards Behavioural Economics
Economics as “logic” of rational behaviour
Economics as psychology of rational behaviour
The Disciplines of Economics
Economics as “moral science”
Economics as political theory
Kantian political economy
Economics as study of catallaxy
Conclusion
See also:
References and further reading
The last three decades have seen an upsurge in the number of publications addressing themes that have come to be grouped under the heading of “evolutionary economics”, paralleled by the foundation of new journals and new scientific societies devoted to the subject matter.
Realism of Perception
Evolutionary ontology
Analytical Ontology: New Concepts of Representation
Rule Taxonomy
System Science and Evolutionary Science
Theoretical Architecture: Micro-Meso-Macro
Evolutionary Microeconomics
Evolutionary Macroeconomics
Outlook
See also:
References and further reading
Introduction
What is an Economic Experiment?
Three Objectives and Three Strands in Experimental Economics
Aims and objectives
Strands
Concluding Remarks
See also:
References and further reading
Financial economics is both an ancient subject, with origins in business practice, and one of the newest, with origins in applied mathematics.
The Capital Asset Pricing Model
Finance and General Equilibrium
Efficient Markets
No Arbitrage
Finance and General Equilibrium, Redux
The Future of Finance
See also:
References and further reading
Formalization and mathematical modelling
Claims that economics is close in spirit and principle to mathematics have been reiterated many times; a well-known one is William S. Jevons’s “our science must be mathematical, simply because it deals with quantities” (1871 [1888]: 1.5, original emphasis).
Mathematical Economics up to 1925
The eighteenth century: a marriage not consumated
The early nineteenth century: building economics through geometry and calculus
Marginal variations, limits, and the continuum
Understanding markets: diagrams or equations?
The classical tradition
Mathematical Economics since 1925
Optimization and its discontents
Away from calculus? The rise and fall of general equilibrium theory
Game theory: from the “invisible hand” to the “prisoner’s dilemma”
Partial equilibrium and the advent of non-mathematical quantitative methods
Formalization is Dead - Long Live Formalization!
See also:
References and further reading
In August 1941, at Princeton University, while working on the introductory chapter of what was to become the Theory of Games and Economic Behavior (von Neumann and Morgenstern 1944 [1947]), Oskar Morgenstern confided to his diary: “Johnny called me; he likes my manuscript...
From “Struggle” to “Balance”: Von Neumann’s Minimax Theorem of 1928
Economics and Mathematics in Interwar Vienna
Von Neumann and the Struggles of the 1930s
A New Mathematics of Society
Reception and Impact of the Book
See also:
References and further reading
When, in some discipline, we arrive at a fully fledged, internally consistent model, we have a tendency to assume that such a model was the inevitable consequence of progress in that discipline.
Economic Equilibrium: The Pre-Walrasian Background
Walrasian General Equilibrium
Two Visions of Equilibrium
Equilibrium and the Adjustment to It
Information
Three Ways Out
Conclusion
See also:
References and further reading
Ever since the inception of systematic economic analysis at the time of the classical economists from William Petty to David Ricardo the problem of economic growth - its sources, forms and effects - has been high on the agenda of economists.
Adam Smith on Growth
David Ricardo on Diminishing Returns
Linear Classical Models of Production
Models of Exogenous Growth
Keynes and Keynesians
Endogenous Growth Theory
See also:
References and further reading
The distribution of output among the members of society is one of the oldest and most important topics of economics.
The Distribution among Social Classes: The Classical Economists
The Distribution among Factors of Production: The Marginalist Approach
Marginal Productivity and Interest
Back to a Surplus Theory of Interest
The Post-Keynesian Theory of Growth and Distribution
The “Real Wages-Rate of Interest Frontier”
The Theories of Distribution and the Empirics of Inequality
See also:
References and further reading
Are you seriously proposing that we abandon the concept of perfect competition, the theory of general equilibrium and the New Welfare Economics associated with perfectly competitive general equilibrium?
Pre-History (before 1890)
Classical political economy
Pre-marginalism
The Historical School
Marginalism
Proto-History (from 1890 to 1930)
Marshall
Scale, scope and network economies
Strategies and market structures
The emergence of the concept of perfect competition
Policy implications
The Official Birth of IO (from 1930 to 1950)
The revolution of imperfect competition
The structure-conduct-performance approach
Chicago
Other approaches
Harvard versus Chicago (from 1950 to 1970)
The dominance of the S-C-P approach
The new Chicago School
Oligopoly theories
The New IO Theory (from 1970)
Conclusion
See also:
References and further reading
Input-output analysis is a technique developed for the study of interdependencies between sectors or industries of an economy.
The Origins of Input-Output Analysis
The Closed and Open Leontief Models
The Dynamic Input-Output Model
Monetary and Physical Models
The Commodity-by-Industry Approach
Updating Coefficients: The RAS Procedure
Applications of Input-Output Analysis
Social Accounting Matrices
See also:
References and further reading
The old American institutionalism was part of the pluralist mainstream of the interwar period, but declined for various reasons.
The Central Role of Ronald Coase
New Institutional Economics
Transaction costs economics
Property rights theory
Economic analysis of law
Modern Institutionalism
The firm and the market
Institutional law and economics
Conclusion
See also:
References and further reading
International trade is one of the oldest forms of globalization. Its motivations, advan­tages and possible drawbacks have been speculated on in the Western world for centuries by philosophers, businessmen, theologians and economists.
Greek Philosophers on the Causes and Advantages of Trade
Providence and Trade, Mercantilism, and the Eighteenth-Century Rule
Adam Smith on the Benefits of Trade
David Ricardo and Comparative Advantage
S. Mountifort Longfield and John Stuart Mill
The Protection of Infant Industries: Hamilton, Rae, List, Mill, Marshall and Taussig
Neoclassical Trade Theory: Barone, Haberler, Heckscher and Ohlin
The Heckscher-Ohlin-Samuelson Theory of Trade
Alternatives to the H-O-S Theory of Trade
The New Trade Theory
Epilogue
See also:
References and further reading
The problem of employment is a central topic in economic thought.
The Classical Economists and Marx on Wages and Employment
The Wage Fund Theory
Marginalist Theory
Determination of Employment in Keynes’s General Theory
The Tendency towards Full Employment in the Neoclassical Synthesis
Recent Developments in the Mainstream
Developments Outside the Mainstream
See also:
References and further reading
The aim of this entry is to introduce the reader to the main episodes that have marked the course of macroeconomics. It starts with an evocation of the emergence of modern macroeconomics as a new sub-discipline arising in the aftermath of John Maynard Keynes’s General Theory.
The Emergence of Modern Macroeconomics
The Heyday of Keynesian Macroeconomics
Disequilibrium and Non-Walrasian Equilibrium Modelling
The Natural Rate of Unemployment
The New Classical All-Out Attack on Keynesian Macroeconomics
Lucas’s assessment of the General Theory
Kydland and Prescott’s intertemporal inconsistency claim
New Classical Macroeconomics: A Different Research Programme
The New Keynesian Counter-Offensive
Real Business Cycle Models
Second-Generation New Keynesian Modelling
The Impact of the 2008-09 Financial Crisis on Macroeconomic Theory
See also:
References and further reading
The practitioners of the history of economic thought engage frequently in discussion on issues relating to its subject-matter and method.
In Search of a Study Object
Methodological Distinctions
Theoretical retrospect
History matters
Renewing historical approaches
Concluding Remarks
See also:
References and further reading
Money and Banks from Aristotle to John Law
Money and interest
Money and prices
The Emergence of Paper Money and Quantity Theory
The emergence of banks and paper money
The quantity theory versus banknotes
Monetary Stability and Banking Risks in Classical Theory
Banks as liquidity providers
Price of gold, value of paper money and currency board
Universal equivalent and finance capital
From the Money Market to the Market for Money
US debates regarding quantity theory and the elasticity of the banking system
From Wicksell to Hayek
From Hawtrey to Keynes
From Keynes (1936) to the neoclassical synthesis
Demand for Money and Value of Money
New Foundations for the Reintroduction of Banks
Introducing banks into the macroeconomic model
A new microeconomics of banking and money market
See also:
References and further reading
The Keynesian Approach
New Open Economy Macroeconomics
New Insights with Opposing Results
Challenges
See also:
References and further reading
Political philosophy and economics: freedom and labour
The relationship between freedom and labour is a ground for reflection where political philosophy meets economics.
Freedom and Labour in the Ancient World
The Emergence of Labour as a Positive Value
Locke, labour and property
Max Weber, labour and the new spirituality
The “Spontaneous Order” as the Liberation of Individual Actions
Freedom for All: Freedom and its Conditions of Exercise
Rousseau and the general will
Kant and the good will
Hegel, state and civil society
Rawls and Sen on formal and real freedom
See also:
References and further reading
Introduction
The Populationist-Macroeconomic Approach
Mercantilism
Adam Smith
Henry Charles Carey and Allyn Young on increasing returns and population growth
The Malthusian-Microeconomic Approach
Classical economists: toward the stationary state
The “Institutional” Approach
Sismondi
The “Ricardian Socialists”
Marx
Concluding Remarks
See also:
References and further reading
In the history of economic thought, poverty has been one of the most discussed prob­lems.
Definition
Causes of Poverty and Types of Poverty
Universal type of poverty
Mass poverty
Poverty in affluent societies
Economic Surplus and Poverty
Economic surplus: definition
Poverty in the History of Economics
Adam Smith
Thomas Robert Malthus
David Ricardo
John Stuart Mill
Karl Marx
Alfred Marshall, Knut Wicksell, and John Maynard Keynes
Galbraith on Mass Poverty
A Japanese Example and Contemporary Studies
See also:
References and further reading
A Paradoxical Subject
Diversity of roots
Diversity of topics
The Character of the Subject in Historical Perspective
Public economics and normative economics
Beyond homo oeconomicus
Nation-Specific Traditions
The co-evolution of theories and institutions
National traditions: an overview
Crossing Traditions, Combinatorial Progress
Concluding Remarks
See also:
References and further reading
Resource and environmental economics
The purpose of this entry is to provide an overview of the development of environmen­tal and resource economics and its present situation.
Concepts
Early Economists’ Views on Resources
Theory of Reproducible and Non-Reproducible Resources
Non-reproducible resources: Hotelling and after
Neo-Ricardian contribution to the theory of non-reproducible resources
Reproducible resources: open-access problems
Externalities as Resource Problems
Impacts of Pollution on Economics
The tragedy of the commons
The limits to growth: the Malthusian spectre again?
Modern Economics on Resources and Environment
Conclusion
See also:
References and further reading
Social choice in its modern guise is a young subject that can be dated back to the end of the 1940s and the beginning of the 1950s in the works of Duncan Black (1948), Kenneth Arrow (1950, 1951) and Georges- Theodule Guilbaud (1952).
The Precursors
Pliny the Younger
Ramon Lull
Nicholas of Cusa
Samuel von Pufendorf
The Founding Fathers
Jean-Charles de Borda
Marie-Jean-Antoine-Nicolas Caritat, Marquis de Condorcet
Jeremy Bentham
Social Choice during the Nineteenth Century
Arrovian Social Choice
Formal preliminaries
Arrow’s impossibility theorem
Sen and the Paretian liberal paradox
The Gibbard-Pattanaik-Satterthwaite theorem
Black, single-peakedness and majority rule
Harsanyi and utilitarianism
Conclusion
See also:
References and further reading
Technical change and innovation
The problem of technical change, its causes, forms and effects, has been high on the agenda of economic analysis ever since its systematic inception in the second half of the seventeenth century and its full blooming at the time of the French and English classi­cal political economists.
Adam Smith: Technical Change and the Division of Labour
David Ricardo: Technical Change and Income Distribution
Karl Marx: A Rising Organic Composition of Capital
Joseph A. Schumpeter: Innovation and Creative Destruction
Neoclassical Growth Theory: Technical Change as “Manna from Heaven”
Linear and Non-Linear Models of Innovation
Induced Innovations and Directed Technical Change
Innovation in an Evolutionary Framework
Technical Change in New Growth Theory
Pervasive Technical Change Driven by “General Purpose Technologies”
Systems of Innovation: A Policy-Orientated View on Innovation
Concluding Remarks
See also:
References and further reading
The marginalist or neoclassical theory of the firm conceptualizes it as a producer and analyses its behaviour similarly to that of the consumer: maximization (of profit) under constraint (of the production function).
From Theories of the Entrepreneur to the Marginalist Theory of the Firm
Building the marginalist theory of the firm
Questioning the Neoclassical Theory of the Firm
Institutionalist perspectives
The marginalist controversy
Recent Theories of the Firm
Contractual theories of the firm
Competence-based theories of the firm
See also:
References and further reading
Uncertainty and information are ideas that have a central role in contemporary econom­ics in the domain of decision theory.
From the Origins to the St Petersburg Paradox
Subjective Probability and Mercantile Speculations
Marginalist Expected Utility and the Frequentist Dead End
Keynes’sTreatise on Probability
Von Neumann and Morgenstern’s Utility
The Emergence of Subjective Expected Utility as the Mainstream Paradigm
Contemporary Developments and Prospect Theory
See also:
References and further reading
Utilitarianism and anti-utilitarianism
While there is wide variation in utilitarian approaches to ethics, they are united by their endorsement of the following general principle: the morally right action is judged through the goodness of its outcomes for society, and, conversely, what is good for society is based on what is good for individuals.
Early and Classical Utilitarianism
Utilitarian hedonism
From utilitarianism to economics
Contemporary Utilitarianism
Harsanyi’s rational choice utilitarianism
Preference utilitarianism
Anti-Utilitarianism
Ethical limits of utilitarianism
Practical limits of utilitarianism
Conclusion
See also:
References and further reading
Basic Concepts
Transactions in which an individual, household, firm, government, or other economic entity (“the buyer”) purchases something (usually with money) from another economic entity (“the seller”) are widespread and familiar events in many societies.
The Economy as an Organic Mechanism
Value and Price in Smith
Value and Price in Ricardo
Value and Price after Ricardo: The Bifurcation
Value and Price in Neoclassical Economics
Value and Price in Marx
The commodity law of exchange
The commodity law of exchange and labour-power
The commodity law of exchange and total value added
The capitalist law of exchange
Value and Price in Classical Economics: A Summary
See also:
References and further reading
Welfare economics is the economic study of the definition and the measure of the social welfare; it offers the theoretical framework used in public economics to help collective decision making, to design public policies, and to make social evaluations.
The Paretian Watershed
The old and the new welfare economics
The Pareto criterion
The fundamental theorems of welfare economics
The New Welfare Economics
The British approach to the new welfare economics
The American approach to the new welfare economics
A Promising Future for Welfare Economics
Economics of happiness
The comparative approach
Equity theory
Conclusion
See also:
References and further reading
Index

Books and textbooks on the discipline History of economic scientists:

  1. Faccarello G., Silvant C. (eds.). A History of Economic Thought in France: Political Economy in the Age of Enlightenment. Routledge,2023. — 291 p - 2023 ãîä
  2. Faccarello G., Silvant C. (eds.). A History of Economic Thought in France: The Long Nineteenth Century. Routledge,2023. — 438 p - 2023 ãîä
  3. Filip Birsen. The Early History of Economics in the United States. Routledge,2022. — 268 p - 2022 ãîä
  4. Cord Robert A. (ed.). The Palgrave Companion to Oxford Economics. Palgrave Macmillan,2021. — 819 p - 2021 ãîä
  5. Corsi M., Kregel J., D’Ippoliti C. (Eds.). Classical Economics Today: Essays in Honor of Alessandro Roncaglia. Anthem Press,2018. — 275 p - 2018 ãîä
  6. Crotty J.R.. Keynes Against Capitalism: His Economic Case for Liberal Socialism. London: Routledge,2018. — 410 p - 2018 ãîä
  7. Day R.B., Gaido D.F. (eds). Responses to Marx’s Capital. Leiden: Brill,2017. — 856 p - 2017 ãîä
  8. Faccarello G., Kurz H.D.(eds.). Handbook on the History of Economic Analysis, Volume 1: Great Economists Since Petty and Boisguilbert. Cheltenham: Edward Elgar,2016. — 813 p. - 2016 ãîä
  9. Faccarello G., Kurz H.D.(eds.). Handbook on the History of Economic Analysis. Volume II: Schools of Thought in Economics. Cheltenham: Edward Elgar,2016. — 498 p - 2016 ãîä
  10. Barnett Vincent (ed.). Routledge Handbook of the History of Global Economic Thought. Routledge,2015. — 359 p - 2015 ãîä
  11. Brown M. Adam Smith's. Economics: Its Place in the Development of Economic Thought. London: Taylor & Francis Group,2010. — 202 p - 2010 ãîä
  12. Folbre N.. Greed, Lust and Gender: A History of Economic Ideas. Oxford University Press,2010. - 304 pages - 2010 ãîä
  13. Allen R.C., Bengtsson T., Dribe M.. Living Standards in the Past: New Perspectives on Well-Being in Asia and Europe. Oxford University Press,2005. - 495 p. - 2005 ãîä
  14. Caporaso J.A., Levine D.P.. Theories of Political Economy. Cambridge: Cambridge University Press,1992. — 253 p. - 1992 ãîä
  15. Barber William J.. A history of economic thought. Penguin,1967. — 153 p - 1967 ãîä
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