These guided readings trace the development of the theories of value (prices of commodities) and distribution (incomes and wealth) and their relation to the arguments for and against laissez-faire.
The readings will be organized as:
• Adam Smith sets the agenda for economics
• The transition from Classical Economics to the Marginalist Revolution of the 1870’s (Neo-classical Economics)
• Austrian Economics and Market Socialism
• The transition from Neo-Classical Economics to the Incentive Revolution of the 1970’s.
As background for Smith, a brief review of:
Mercantilism
Physiocrats
Smith
– Theory of Moral Sentiments
– Lectures on Jurisprudence
– Wealth of Nations
Classical Economics
∗ Malthus
∗ Ricardo
∗ Mill
Pre-cursors of the Marginalist Revolution
∗ Bentham
∗ Gossen
∗ Cournot
∗ Dupuit
Marginalist Revolution
∗ Jevons
∗ Menger (Austrian School) → Weiser, Bohm-Bawerk
∗ Walras (General Equilibrium) → Pareto
Marginal Productivity: Wicksteed, Clark, Edgeworth
Cambridge School: Sidgwick, Marshall, Pigou
• Austrian Economics and Market Socialism
Austrian
∗ Mises, Hayek
Market Socialists
∗ Lange, Lerner
• The transition from Neo-Classical Economics to the Incentive Revolution of the
1970’s.
Game Theory and Modern Duality
∗ von Neumann
Incentives
∗ Nash
∗ Vickrey, Hurwicz, Spence, Rothschild-Stiglitz, Alchian-Demsetz, etc., etc.