Adam Smith's Legacy: His Place in the Development of Modern Economics

BOOK COVER......Page 1
HALF-TITLE......Page 2
TITLE......Page 3
COPYRIGHT......Page 4
CONTENTS......Page 5
FIGURES......Page 9
TABLES......Page 10
FOREWORD......Page 11
1 THE OVERDUE RECOVERY OF ADAM SMITH’S REPUTATION AS AN ECONOMIC THEORIST......Page 16
INDETERMINACY FROM TOO MANY ‘RESIDUALS’?......Page 18
HOW SMITH WITHSTANDS MARX’S DOUBTS......Page 19
SMITH AS MERELY A SUPPLY AND DEMAND MONGER......Page 20
AVOIDING OVER-CONCRETE IMPLICIT INFERENCE......Page 21
RICARDO’S MAIN BEEF......Page 23
ADAM SMITH’S BLOOMER?......Page 25
REFERENCES......Page 29
2 SMITH’S USE OF DATA......Page 31
NOTES......Page 44
3 THE GENERAL THEORY OF SURPLUSES AS A FORMALIZATION OF THE UNDERLYING THEORETICAL THOUGHT OF ADAM SMITH, HIS PREDECESSORS AND HIS CONTEMPORARIES......Page 45
The Wealth of Nations......Page 46
THE GENERAL THEORY OF SURPLUSES AND THE MODEL OF AN ECONOMY OF MARKETS......Page 55
Situations of maximum efficiency......Page 56
Two basic propositions......Page 57
Equivalence of states of stable general equilibrium and states of maximum efficiency (equivalence theorems)......Page 58
The model of the economy of markets......Page 59
The economy of markets......Page 60
THE MODEL OF AN ECONOMY OF MARKETS VERSUS THE MARKET ECONOMY MODEL OF THE CONTEMPORARY LITERATURE......Page 61
The market economy model......Page 62
The hypothesis of general convexity......Page 63
The abstract formalism of set theory......Page 64
OVERVIEW......Page 71
NOTES......Page 73
INTRODUCTION......Page 80
GOVERNMENT EXPENDITURE......Page 81
GOVERNMENT FINANCE......Page 86
THE GOVERNMENT ACCOUNTS IN 1776......Page 93
MONOPOLIES......Page 94
COLONIAL POLICY......Page 97
THE PROGRESS OF FREE TRADE......Page 100
SMITH’S VIEW OF THE DETERMINANTS OF SAVING......Page 104
THE KEYNESIAN PARADIGM......Page 107
THE NEW THEORIES......Page 109
IMPLICATIONS OF THE LIFE CYCLE HYPOTHESIS FOR AGGREGATE SAVING......Page 111
THE ROLE OF BEQUESTS AND FISCAL POLICIES......Page 112
TESTS OF SAVING THEORIES......Page 114
THE LIFE CYCLE HYPOTHESIS AND THE DECLINE IN SAVING: SOME EMPIRICAL EVIDENCE......Page 116
REFERENCES......Page 120
INTRODUCTION......Page 122
‘PRODUCTION’ FOR OWN CONSUMPTION AS A NON-TRADEABLE GOOD......Page 123
WORK AND WELFARE......Page 125
GENERALIZED INCREASING RETURNS......Page 126
CHARACTERISTICS OF THE WORK-SUPPLY EXTERNALITY......Page 128
INTERNALIZATION THROUGH A WORK ETHIC......Page 130
WORK AS BENEVOLENT SELF-INTEREST......Page 132
NOTES......Page 133
REFERENCES......Page 134
THE INVISIBLE HAND AND THE KEYNESIAN DICHOTOMY......Page 135
THE CLASSICAL COUNTER-REVOLUTION......Page 137
MACROECONOMICS IN THE WEALTH OF NATIONS......Page 138
THE INVISIBLE HAND AND GENERAL EQUILIBRIUM THEORY......Page 140
KEYNES’S REVOLT AGAINST THE PREMISES OF CLASSICAL MACROECONOMICS......Page 143
ROBINSON CRUSOE MACROECONOMICS......Page 144
REFERENCES......Page 146
8 ADAM SMITH AND HUMAN CAPITAL......Page 148
EXTENSIONS OF MARKET CAPITAL......Page 150
ANALYTIC LEVERAGE OF HUMAN CAPITAL......Page 154
CLOSING COMMENT......Page 157
NOTES......Page 158
9 THE PRESENT STATE OF ECONOMIC SCIENCE......Page 160
ECONOMICS IN THE UNIVERSE OF ALL SCIENCES......Page 165
DEVELOPMENTS IN ECONOMIC THOUGHT......Page 167
FUTURE DEVELOPMENTS IN ECONOMIC SCIENCE......Page 180
REFERENCES......Page 184
The generation of surpluses......Page 186
The underlying order in the functioning of an economy of markets......Page 188
The generation of surpluses......Page 189
The underlying order of the functioning of an economy of markets......Page 190
The generation of surpluses......Page 191
The underlying order of the functioning of an economy of markets......Page 192
Notes......Page 193
Structural conditions......Page 195
Distributable surplus corresponding to a given modification of the economy......Page 196
Conditions of equilibrium and maximum efficiency (theorems of equivalence)......Page 197
The dynamic process of the economy: decentralized search for surpluses and the economy of markets (third fundamental theorem)......Page 199
Paths to states of economic equilibrium and maximum efficiency......Page 200
General comment......Page 201
Generation of distributable surplus......Page 202
Approximate value of the economic loss corresponding to the non-equality of marginal values in the neighbourhood of a situation of maximum efficiency......Page 205
Generation of surpluses and marginal analysis......Page 206
Notes......Page 207
III BIBLIOGRAPHY......Page 209
INDEX......Page 221