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Patinkin and the Pigou effect: or how a Keynesian came to accept an anti-Keynesian argument

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  • Goulven Rubin

Abstract

This paper intends to explain how was a supporter of Keynes like Don Patinkin led to integrate the Pigou effect, the arch anti-Keynesian effect, in his theory of involuntary unemployment. The reading of Patinkin's unpublished PhD thesis and the use of the Don Patinkin Papers from Duke University's archives shed new light on this key episode in the formation of the 'neoclassical synthesis'. Using this material, we show that Patinkin changes his mind on this topic and that his incorporation of the real balance effect into the Keynesian apparatus is, paradoxically, an attempt at reinforcing it.

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  • 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.
    • Handle: RePEc:taf:eujhet:v:12:y:2005:i:1:p:47-72
    DOI: 10.1080/0967256042000338032
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    1. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
    2. Jean-Michel Grandmont, 1974. "On the Short-Run Equilibrium in a Monetary Economy," International Economic Association Series, in: Jacques H. Drèze (ed.), Allocation under Uncertainty: Equilibrium and Optimality, chapter 12, pages 213-228, Palgrave Macmillan.
    3. D. Patinkin, 1995. "The training of an economist," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 48(195), pages 359-395.
    4. Dimand, Robert W, 1991. "Keynes, Kalecki, Ricardian Equivalence, and the Real Balance Effect," Bulletin of Economic Research, Wiley Blackwell, vol. 43(3), pages 289-292, July.
    5. Alain Béraud & Gilbert Faccarello, 2000. "Nouvelle histoire de la pensée économique, tome 3," Post-Print halshs-00201476, HAL.
    6. Presley, John R, 1986. "J. M. Keynes and the Real Balance Effect," The Manchester School of Economic & Social Studies, University of Manchester, vol. 54(1), pages 22-30, March.
    7. Laidler,David, 1999. "Fabricating the Keynesian Revolution," Cambridge Books, Cambridge University Press, number 9780521641739, October.
    8. D. Patinkin, 1995. "The training of an economist," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 48(195), pages 359-395.
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    Cited by:

    1. Ioannidis, Yiorgos, 2011. "Employment in the Keynesian and neoliberal universe: theoretical transformations and political correlations," MPRA Paper 45062, University Library of Munich, Germany.
    2. Goulven Rubin, 2014. "Oskar Lange or how IS-LM came to be interpreted as a Walrasian model," Working Papers halshs-01018658, HAL.
    3. Goulven Rubin, 2011. "Oskar Lange and the influence of Walrasian theory during the Keynesian revolution," Working Papers halshs-00817758, HAL.

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