The Palgrave Companion to Cambridge Economics

Introduction
Contents
List of Figures
List of Tables
Part I: Themes in Cambridge Economics
	1: Cambridge’s Contribution to the Revival of Classical Political Economy
		1 Introduction
		2 Classical Political Economy
		3 Vulgar Economy and the Marginal Revolution
		4 The Development of Marshall’s Method and Theory
		5 Sraffa, Keynes, and the Post-Keynesian Revival of Classical Political Economy
		6 The Cambridge Welfare Tradition Versus the Cambridge Keynesian Tradition
		7 Concluding Remarks
		References
	2: Cambridge’s Contribution to Methodology in Economics
		1 Introduction
		2 The Cambridge Philosophical Tradition and Classical Political Economy
		3 The Cambridge Resolution of the Methodenstreit
		4 John Maynard Keynes and Methodology in Twentieth-Century Cambridge
		5 Cambridge’s Contributions in the Twenty-­First Century
		References
	3: Cambridge Theories of Welfare Economics
		1 Introduction
		2 Late Nineteenth Century
			Sidgwick and the Welfare-enhancing Art of Political Economy
			Foxwell on Periodic Mismatches, Speculation, and Welfare
			Marshall, Surplus and the Short- and Long-run Aspects of Welfare
			John Neville Keynes on Theory in Relation to Concrete Economic Problems
		3 Early Twentieth Century
			Pigouvian Market Failure and Welfare Analysis
			John Maynard Keynes and Welfare
		4 Mid-Twentieth Century
			A Revival of the Marshallian Approach to Welfare
		5 Conclusion
		References
	4: Cambridge and Development Economics
		1 Introduction: Classical Political Economy and the Early Influences on Development Economics
		2 Paley and Malthus: The First of the Cambridge Development Economists
		3 The Influence of Science: The Marginal Revolution and Biological Evolution
		4 The Multidisciplinary Pursuit of Optimality: Alfred Marshall and the Establishment of the Economics Profession
		5 The Marshallians: Keynes and the Circus
		6 Conclusion
		References
	5: Cambridge and Econometrics
		1 Introduction
		2 Economic Theories
		3 Relevant Data
		4 Relevant Quantitative Analysis
			Microeconomic Analysis
			Macroeconomic quantitative analysis
			Keynes and Econometrics
		5 Richard Stone and the Department of Applied Economics
		6 Conclusion
		References
	6: Cambridge in Mind: Economics and Psychology on the Cam
		1 The Origins of Psychology
		2 Psychology at Cambridge
		3 Sidgwick
		4 Marshall
		5 Pigou
		6 Keynes
		7 Conclusion
		References
	7: Post Keynesian Economics in Cambridge
		1 Introduction
		2 What’s in a Name?
		3 While Keynes Lived (Pre-1946)
		4 After Keynes: The First 10 Years (1946–1956)
		5 The Golden Age That Wasn’t (1956–1973)
		6 The Age of Decline (1973–2016)
		7 Epilogue
		References
	8: Cambridge and Economic History
		1 Introduction
		2 Postan and Economic History
		3 The Cambridge Group for the History of Population and Social Structure and E.A. Wrigley
		4 History and Economic History
		5 Conclusion
		References
	9: Theories Came and Went, Good Data Endured: Accounting at Cambridge
		1 Introduction
		2 National Income Accounting
			Creating National Accounts
			Forecasting and Disaggregating National Accounts
			Retrospective National Accounts
		3 Business Accounting
			IT, Accounting and Economics
			The Impact in Economics of the Faculty’s Analyses of Company Accounts
			Other Developments in Financial Accounting for Business
		4 Occasional Accountants
			Microeconomic Theory of Accounting for Business
			Accounting Identities in Macroeconomic Theory
			Environmental Accounting
			Behind the Scenes Contributors
		5 The Impact of Faculty Accounting Outside Academe
		6 Conclusion
		References
Part II: Some Cambridge Economists
	10: William Paley (1743–1805)
		1 Introduction
		2 Paley’s Method of Thought
			The Cambridge Context of Paley’s Economic Thought
		3 Utilitarian Ethics and Methodological Individualism
		4 Other Possible Influences on Paley’s Economic Thought
		5 Economic Analysis in ‘Of Population and Provision’
			The Interdependence of ‘Provisions’ and ‘Luxuries’
			The Generalisation of Mandeville and Optimisation
		6 In What ‘Sense’ Was Paley ‘The First of the Cambridge Economists’?
			Paley’s Putative Influence on Malthus
			A Proto-Keynesian Paley?
		Appendices
			Appendix A: Stability of Equilibrium
			Appendix B: Optimisation
		References
			Main Works by William Paley
			Other Works Referred To
	11: Thomas Robert Malthus (1766–1834)
		1 Introduction
		2 Growth Theory
		3 Aggregate Demand and the Malthus–Keynes Relation
		4 Malthusian ‘Physiocracy’ and Its Abandonment
		5 Applied Economics
		6 Conclusion
		References
			Main Works by Thomas Robert Malthus (Starred Items are Cited in the Text)
			Works Relating to Malthus
			Other Works Referred To
	12: George Pryme (1781–1868)
		1 Introduction
		2 Life
		3 Establishing Economics at Cambridge and Views on Economics
		4 Conclusion
		References
			Main Works by George Pryme
			Other Works Referred To
	13: Charles Babbage (1791–1871)
		1 Introduction
		2 EMM—History and Methodological Approach
		3 Division of Labour, Mechanisation, and the Size of Manufacturing Plants
		4 Transactions Costs
		5 Competition and Monopoly
		6 Conclusion
		References
			Cited Works by Charles Babbage
			Other Cited Works
	14: Henry Fawcett (1833–1884)
		1 Introduction
		2 Politics and Economics
		3 Conclusion
		References
			Works by Henry Fawcett
			Other Works Referred To
	15: Henry Sidgwick (1838–1900)
		1 Introduction
		2 Ethics and Economics
		3 Political Economy and Economics
		4 Conclusion
		References
			Works by Henry Sidgwick
			Other Works Referred To
	16: Alfred Marshall (1842–1924)
		1 Introduction
		2 Marshall, the Cambridge School, and the Professionalisation of Economics
		3 Marshall’s Economics: Equilibrium and Evolution
		4 Capital and Labour
		5 Applied Industrial Economics
		6 Marshall and Macroeconomic Analysis
		7 Conclusion
		References
			Selected Writings of Alfred Marshall
			Other Works Referred To
	17: Herbert Somerton Foxwell (1849–1936)
		1 Introduction
		2 The Historicist Movement in England
		3 Banking and Currency Studies
		4 Competition, Monopolies, and Employment
		5 History of Economic Thought
		6 Conclusion
		References
			Selected Writings of Herbert Somerton Foxwell
			Other References
	18: John Neville Keynes (1852–1949)
		1 Introduction
		2 The Scope and Method of Political Economy
		3 Conclusion
		References
			Main Works by John Neville Keynes
			Other Works Referred To
	19: John Harold Clapham (1873–1946)
		1 Introduction
		2 Clapham and Economics
		3 Clapham as an Economic Historian
		4 Clapham and Politics
		5 Conclusion
		References
			Works by John Clapham
			Other Works Referred To
	20: A.C. Pigou (1877–1959)
		1 Introduction
		2 Early Years at Cambridge
		3 Scholarship
		4 Leadership
		5 Public Service
		6 Conclusion
		References
			Selected Writings of A.C. Pigou
			Other References: Unpublished Documents
			Published Documents
	21: Ralph George Hawtrey (1879–1975)
		1 Introduction
		2 Hawtrey’s Economics
		3 Hawtrey and Some Economic Policy Issues
		4 Contemporary Influence
		5 Conclusion
		References
			Selected Key Works by Ralph G. Hawtrey
			Other Works Referred To
	22: Frederick Lavington (1881–1927)
		1 Introduction
		2 The 1911, 1912, and 1913 Economic Journal Articles on Banking, Interest, and Speculation
		3 The 1921 Book on The English Capital Market
		4 The 1922 Study of The Trade Cycle
		5 Lavington’s Three Economica (1924, 1926b, and 1927) Papers
		6 Conclusion
		References
			Main Works by Frederick Lavington
			Other Works Referred To
	23: John Maynard Keynes (1883–1946)
		1 Introduction
		2 Keynes and Macroeconomics
		3 Keynes and International Monetary Reform
		4 Conclusion
		References
			Main Works by John Maynard Keynes
			Other Works Referred To
	24: Gerald Frank Shove (1887–1947)
		1 Introduction
		2 The Problem of Increasing Returns
		3 The Discussion about Equilibrium and Imperfect Competition
		4 Shove and Keynes
		5 Conclusion
		References
			Cited Works by Gerald Shove
			Other Cited Works
	25: Dennis Holme Robertson (1890–1963)
		1 Introduction
		2 Trade Cycles and Equilibrium
		3 Money
		4 Robertson and the Cambridge Approach to Utility and Welfare
		5 Conclusion
		References
			Cited Works by Dennis Robertson
			Other Works Referred To
	26: (Edward) Austin (Gossage) Robinson (1897–1993)
		1 Introduction
		2 School and Early Cambridge Days
		3 Christian Beliefs and African Economic Development in the 1930s
		4 Austin’s Response to The General Theory
		5 Austin and Whitehall
		6 Austin and the IEA
		7 Austin in the Faculty of Economics and Politics and Sidney Sussex College
		8 Contemporaries’ Impressions and Evaluations of Austin
		9 Conclusion
		References
			Main Works by Austin Robinson
			Other Works Referred To
	27: Piero Sraffa (1898–1983)
		1 Introduction
		2 Gramsci, Wittgenstein, and Ricardo
		3 The Sraffian Revolution: Critique and Reconstruction
		4 The Debates in Capital Theory and the Sraffian Schools
		5 Conclusion
		References
			Main Works by Piero Sraffa
			Other Works Referred To
	28: Maurice Herbert Dobb (1900–1976)
		1 Introduction
		2 Classical Political Economy: A Theoretical Way Forward
		3 Intellectual Versatility and Influence
		4 The Entrepreneurial Myth and the Instability of Capitalism
		5 Underdevelopment and the Virtues of Planning
		6 Dobb’s Philosophical Ontology and Methodology
		7 British Marxian Economic Historians
		8 Studies in the Development of Capitalism
		9 Conclusion
		References
			Main Works by Maurice Dobb
			Other Works Referred To
	29: Frank P. Ramsey (1903–1930)
		1 Introduction
		2 The Cambridge Road to Genius
		3 Ramsey’s Economics
		4 Crossing the Atlantic
		5 Conclusion
		References
			Cited Works by Frank Ramsey
			Other Works Referred To
	30: Joan Violet Robinson (1903–1983)
		1 Introduction
		2 Against Marshall: Realism of Assumptions and Internal Logic: Economics of Imperfect Competition
		3 Economics Is a Serious Subject (ESS): Fact and Value: Science and Ideology
		4 Keynes
		5 Marx
		6 Socialist Democracy
		7 Growth and Distribution
		8 Socialism and Planning: Development Issues
		9 Political Economy
		10 Conclusion
		References
			Main and Cited Works by Joan Robinson
			Other Cited Works
	31: Richard F. Kahn (1905–1989)
		1 Introduction
		2 Employment, Liquidity, and the Fight Against the Quantity Theory of Money
		3 Markets and Prices: Superseding the Theory of Perfect Competition
		4 Reforming International Economic Institutions
		5 Kahn as a Cambridge Economist
		6 Conclusion
		References
			Works by Richard Kahn
			Other Works Referred To
	32: James Meade (1907–1995)
		1 Introduction
		2 The Cambridge Circus
		3 Geneva and London
		4 Return to Cambridge
		5 Conclusion
		References
			Main works by James Meade
			Other Works Referred To
	33: Nicholas Kaldor (1908–1986)
		1 Introduction
		2 Before Cambridge
		3 Growth and Distribution
		4 Economic Policy
		5 Economic Theory
		6 Conclusion
		References
			Main works by Nicholas Kaldor
			Other Works Referred To
	34: David Gawen Champernowne (1912–2000)
		1 Introduction
		2 Keynesian and Classical Approaches to Unemployment
		3 Income Distribution and Stochastic Processes
		4 Production, Capital, and Growth
		5 Expectations, Uncertainty, and Decision-Making
		6 Conclusion
		References
			Main Works by David Champernowne
			Other Works Referred To
	35: William Brian Reddaway (1913–2002)
		1 Introduction
		2 Reddaway’s Early Life and Career
		3 Reddaway and Stone
		4 Reddaway’s New Methods of Teaching and Research
		5 Corporate Finance and Portfolio Selection Theory
		6 Reddaway on Statistical and Economic Significance
		7 Reddaway and the Indian Economy
		8 Conclusion
		References
			Selected Works by Brian Reddaway
			Other Cited Works
	36: Richard Murphey Goodwin (1913–1996)
		1 Introduction
		2 Non-linear Endogenous Non-stochastic Aggregate Fluctuations (NENAF)
		3 Coupled Dynamics, Optimal Planning, Stabilization Policy, and Iteration
		4 Conclusion
		References
			Cited Works by Richard Goodwin
			Other Cited Works
	37: Richard Stone (1913–1991)
		1 Introduction
			His Life
			The UK National Accounts
			The Foundation of the DAE
			An Outline of This Chapter
		2 Economic Theory and Data
			The Role of Theory and Data
			Econometrics and Keynesian Economics
			The System of National Accounts
		3 Consumer Demand
		4 Macroeconomic Modelling and Policy
			The Foundation of the Cambridge Growth Project (CGP)
			The CGP Model
			Indicative Planning
			Input–Output Modelling
		5 Richard Stone’s Influence on Cambridge Economics
		6 Conclusion
		References
			Richard Stone’s Publications Most Relevant to Cambridge Economics
			Bibliography of References Discussing Richard Stone and His Work
	38: Polly Hill (1914–2005)
		1 Introduction
		2 The Migrant Cocoa-Farmers of Southern Ghana: A ‘Field Economist’ at Work
		3 Return to Cambridge, Between Disciplines
		4 Development Economics on Trial: The Anthropological Case for a Prosecution
		5 Conclusion
		References
			Main Works by Polly Hill
			Other Works Referred To
	39: Phyllis Deane (1918–2012)
		1 Introduction
		2 Economic History and Economic Development
		3 History of Economic Ideas and Political Economy
		4 Political Economy and Economic Science
		5 Conclusion
		References
			Main Works by Phyllis Deane
			A Lecture by Phyllis Deane
			An Interview
			Other Works Referred To
	40: Robin Marris (1924–2012)
		1 Introduction
		2 From the Treasury to Multiple-Shift Work
		3 The Economic Theory of ‘Managerial’ Capitalism
		4 Reconstructing Keynesian Economics with Imperfect Competition
		5 How to Save the Underclass
		6 Conclusion
		References
			Cited Works by Robin Marris
			Other Works Referred To
	41: Frank Hahn (1925–2013)
		1 Introduction
		2 Basic Themes
		3 Conclusion
		References
			Works by Frank Hahn Referred to in the Text
			Other Works Referred To
	42: Wynne Godley (1926–2010)
		1 Introduction
		2 Methodology
		3 The Macroeconomic Policy Model
			Price Setting, Inflation, and Real Income
			Aggregate Demand, Productive Potential, and Full Employment
			The External Trade Constraint
			Devaluation and Alternative Trade Policies
			New Cambridge Propositions
			Macroeconomics: The 1983 Book
		4 The Stock–Flow Consistent (SFC) Approach
			Godley’s View of Credit and Banking
			Open Economies
			Unsustainable Processes
		5 Conclusion
		References
			Main Works by Wynne Godley
			Other Works Referred To
	43: Robert Charles Oliver (Robin) Matthews (1927–2010)
		1 Introduction
		2 The First Cambridge Years
		3 A Highlight from the Oxford Years, 1965–1975
		4 Return to Cambridge in 1975: Master of Clare and then, as well, Professor of Political Economy in 1980
		5 Robin and Chess
		6 Further Activities
		7 Conclusion
		References
			Works by R.C.O. Matthews
			Other Works Referred To
	44: Luigi L. Pasinetti (1930–)
		1 Introduction
		2 Luigi Pasinetti: A System-Builder
			2.1	 Pasinetti on the Measurement of Productivity Changes
			2.2	 Pasinetti on Ricardo
			2.3	 Pasinetti on Income Distribution and Growth
			2.4	 Pasinetti on Capital Theory
			2.5	 Pasinetti on Structural Dynamics and Vertical Integration
			2.6	 Pasinetti on the Pure Labour Theory of Value
			2.7	 Pasinetti on the Roots of the Present Financial Crisis, that Is, the Modigliani–Miller Theorem
		3 Conclusion
		References
			Cited Works by Luigi Pasinetti
			Selected Works on Luigi Pasinetti
			Other Works Referred To
	45: G.C. Harcourt (1931–)
		1 The Thirteenth Tribe: Harcourt’s Humane Visions
		2 The Yogi and the Commissar: Meanderings, Exhortations, and Explorations
		3 The Sleepwalkers: Setting the Stage for a Changing Vision
		4 The Gladiators: Australians and Cantabrigians
		5 Conclusion
		A Note on the References
		References
			Main Works by G.C. Harcourt
			Other Works Referred To
	46: Charles Hilliard Feinstein (1932–2004)
		1 Introduction
		2 Historical National Accounts
		3 Methodology of Historical National Accounting
		4 As a Colleague
		5 Social Justice
		References
			Main Works by Charles Feinstein
			Other Works Referred To
	47: Amartya Sen (1933–)
		1 Introduction
		2 1960–1970: From Optimum Savings to Social Choice
		3 Choice, Self-Interest, and Commitment
		4 Bentham, Rawls, and Capabilities
		5 Conclusion
		References
			Some Key Works by A.K. Sen
			Other Authors Cited
	48: James Mirrlees (1936–)
		1 Introduction
		2 Economics and the Economist
		3 Growth
		4 Triumph: Optimal Taxation
		5 Development
		6 The Economist as Adviser
		7 Conclusion
		References
			Main and Cited Works by James Mirrlees
			Other Cited Works
	49: Robert E. Rowthorn (1939–)
		1 Introduction
		2 The Distribution of Income Between Labour and Capital: Inflation and Growth
		3 The Dynamics of Capitalism: Unemployment and Wage Inequality
		4 Grand Issues in Political Economy
		5 A Cambridge Approach to Marriage, Immigration, and Trust
		6 Conclusion
		References
			Main Works by Robert Rowthorn
			Other Works Referred To
	50: Ajit Singh (1940–2015)
		1 Introduction
		2 Take-overs
		3 The Size and Growth of Firms
		4 Developing Nations’ Financial Structures and World Crises
		5 Broader Industrialized Nation Problems
		6 Economic Development Strategy
		7 De-industrialization
		8 The New Threat: China and India
		9 Conclusion
		References
			Main Works by Ajit Singh
			Other Works Referred To
	51: David Michael Garrood Newbery (1943–)
		1 Introduction
		2 Earlier Theoretical Work, Mostly on Developing Economies
		3 Optimal Taxes and Charges for Transport and Energy
		4 Electricity Market Design
		5 Conclusion
		References
			Selected Writings of David Newbery
			Other References
	52: Anthony B. Atkinson (1944–)
		1 Introduction
		2 Tony Atkinson and Cambridge, England
		3 Inequality Measurement and Atkinson (1970)
		4 Standing on Atkinson’s Shoulders: Subsequent Research
			Variations in the Social Welfare Function
			Social Welfare Comparisons
			Poverty Comparisons
			Multidimensional Comparisons
		5 Atkinson and Economic Inequality: Understanding Contemporary Society
		6 Atkinson and Public Economics: High Theory Contributing to Concrete Policy Analysis
		7 Conclusions: Tony Atkinson, Economics, and the Economic Analysis of Inequality
		References
			Main Writings of Anthony B. Atkinson
			Other Works Referred To
Notes on Contributors
Index