IDEAS home Printed from https://ideas.repec.org/a/mth/jsss88/v2y2015i1p64-86.html
   My bibliography  Save this article

Is Walras's Theory So Different From Marshall¡'s?

Author

Listed:
  • Ezra Davar

Abstract

This paper shows that Marshall's theory is generally equivalent to Walras's one. It shows that Walras used two types of demand functions: (1) the original (ordinary) demand curve (function); and (2) the derived (general) demand function. Marshall also used both types of demand curves (function); however he did so in a very simplified and vague manner. Walras used a common method of equilibrium establishment and re-establishment of equilibrium for all four types of economies. First, he discussed the problem of equilibrium establishment using initial basic data. Second, Walras starts the adjustment process by using a model to describe the equilibrium state. He then describes the process of equilibrium establishment from a position of disequilibrium, by the use of his famous algorithm ¨C tatonnement. Finally, Walras discussed the problem of the variation of prices, or the problem of the re-establishment of equilibrium, as a result of changes in the initial basic data for any individual or any group of individuals. Marshall also used the same method, but in an incomplete form. Despite that, Marshall did not formulate the model for individual economies, he discussed the conditions of its optimality; and discussed the process of equilibrium establishment. Furthermore, despite the fact that Marshall described verbally the complete model for the whole (macro) economy in a similar way to Walras, he did not formulate mathematically that model. Marshall also discussed the problem of the re-establishment of equilibrium, as a result of changes in the initial basic data. Therefore, Friedman¡¯s statement that they are alternative theories is mistaken.

Suggested Citation

  • Ezra Davar, 2015. "Is Walras's Theory So Different From Marshall¡'s?," Journal of Social Science Studies, Macrothink Institute, vol. 2(1), pages 64-86, January.
    • Handle: RePEc:mth:jsss88:v:2:y:2015:i:1:p:64-86
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/jsss/article/view/6234/5050
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/jsss/article/view/6234/5050
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carl F. Christ, 1957. "Patinkin on Money, Interest, and Prices," Journal of Political Economy, University of Chicago Press, vol. 65(4), pages 347-347.
    2. Manuel Alejandro Cardenete & Ana-Isabel Guerra & Ferran Sancho, 2017. "Applied General Equilibrium," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-662-54893-6, April.
    3. Screpanti, Ernesto & Zamagni, Stefano, 2005. "An Outline of the History of Economic Thought," OUP Catalogue, Oxford University Press, edition 2, number 9780199279142, December.
    4. Michel De Vroey, 2009. "A Marshall-Walras Divide? A Critical Review of the Prevailing Viewpoints," History of Political Economy, Duke University Press, vol. 41(4), pages 709-736, Winter.
    5. M. G. Hayes, 2006. "The Economics of Keynes," Books, Edward Elgar Publishing, number 12601.
    6. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    7. Emmanuelle Benicourt & Bernard Guerrien, 2008. "Is Anything Worth Keeping in Microeconomics?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 40(3), pages 317-323, September.
    8. Franco Donzelli, 2006. "Marshall vs. Walras on Equilibrium and Disequilibrium," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1037, Universitá degli Studi di Milano.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marek Hudik, 2019. "Two interpretations of the rational choice theory and the relevance of behavioral critique," Rationality and Society, , vol. 31(4), pages 464-489, November.
    2. Wright, Austin L. & Sonin, Konstantin & Driscoll, Jesse & Wilson, Jarnickae, 2020. "Poverty and economic dislocation reduce compliance with COVID-19 shelter-in-place protocols," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 544-554.
    3. Jolian McHardy & Michael Reynolds & Stephen Trotter, 2012. "The Stackelberg Model as a Partial Solution to the Problem of Pricing in a Network," Working Paper series 19_12, Rimini Centre for Economic Analysis.
    4. Janvier D. Nkurunziza, 2005. "Reputation and Credit without Collateral in Africa`s Formal Banking," Economics Series Working Papers WPS/2005-02, University of Oxford, Department of Economics.
    5. Stephanie Rosenkranz & Patrick W. Schmitz, 2007. "Can Coasean Bargaining Justify Pigouvian Taxation?," Economica, London School of Economics and Political Science, vol. 74(296), pages 573-585, November.
    6. Vadim Borokhov, 2014. "On the properties of nodal price response matrix in electricity markets," Papers 1404.3678, arXiv.org, revised Jan 2015.
    7. Yuzhou Jiang & Ramteen Sioshansi, 2023. "What Duality Theory Tells Us About Giving Market Operators the Authority to Dispatch Energy Storage," The Energy Journal, , vol. 44(3), pages 89-110, May.
    8. Daniel Sutter & Daniel J. Smith, 2017. "Coordination in disaster: Nonprice learning and the allocation of resources after natural disasters," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(4), pages 469-492, December.
    9. M. Alejandro Cardenete & M. Carmen Lima & Ferran Sancho, 2013. "Are There Key Sectors? An Appraisal Using Applied General Equilibrium," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 111-129, Winter.
    10. Hanming Fang & Peter Norman, 2014. "Toward an efficiency rationale for the public provision of private goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 375-408, June.
    11. Andrew Lynn, 2022. "Ethics, Economics, and the Specter of Naturalism: The Enduring Relevance of the Harmony Doctrine School of Economics," Journal of Business Ethics, Springer, vol. 178(3), pages 661-673, July.
    12. Gan, Li & Ju, Gaosheng & Zhu, Xi, 2015. "Nonparametric estimation of structural labor supply and exact welfare change under nonconvex piecewise-linear budget sets," Journal of Econometrics, Elsevier, vol. 188(2), pages 526-544.
    13. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    14. Tian, Guoqiang, 2009. "Implementation of Pareto efficient allocations," Journal of Mathematical Economics, Elsevier, vol. 45(1-2), pages 113-123, January.
    15. Ahmad Naimzada & Marina Pireddu, 2019. "The first fundamental theorem of welfare in a general equilibrium evolutionary setting," Working Papers 415, University of Milano-Bicocca, Department of Economics, revised 06 Jun 2019.
    16. Gajanan Panchal & Vipul Jain & Naoufel Cheikhrouhou & Matthias Gurtner, 2017. "Equilibrium analysis in multi-echelon supply chain with multi-dimensional utilities of inertial players," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(4), pages 417-436, August.
    17. Aldasoro, Iñaki & Delli Gatti, Domenico & Faia, Ester, 2017. "Bank networks: Contagion, systemic risk and prudential policy," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 164-188.
    18. Thomas M. Humphrey, 1999. "Mercantilists and classicals: insights from doctrinal history," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 55-82.
    19. Gatti, Nicolas & Cecil, Michael & Baylis, Kathy & Estes, Lyndon & Blekking, Jordan & Heckelei, Thomas & Vergopolan, Noemi & Evans, Tom, 2023. "Is closing the agricultural yield gap a “risky” endeavor?," Agricultural Systems, Elsevier, vol. 208(C).
    20. Aldo Montesano, 2018. "Social welfare for an economy of angelic agents," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(2), pages 185-200, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:jsss88:v:2:y:2015:i:1:p:64-86. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/jsss .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.