Marshall and the Marshallian Heritage: Essays in Honour of Tiziano Raffaelli (Palgrave Studies in the History of Economic Thought)

Tiziano Raffaelli (Pisa 1950) was a widely esteemed scholar in the field of the history and methodology of economics, who died suddenly in January 2016 while still in the midst of working and of developing projects for new lines of research. He was a philosopher of science by formation and a historian of economic ideas by professional choice, with interests covering a vast area, ranging from the 18th to the 20th century and from Europe to the US. Where he left an indelible mark, however, was in his interpretation of Alfred Marshall's economic theory and its reverberations through Keynes on the one hand, and the Cambridge school of industrial economics on the other. Raffaelli's research in this field offered a completely new view of the core and meaning of Marshall's work and of its relevance for 21st century social scientists. In the process, it stimulated a new and fruitful research program in Marshallian economics. This volume consists of two parts. The first is devoted to illustrating the above-mentioned changes in the understanding of Marshallian economics and Raffaelli's role in bringing them about. The second part offers a collection of essays documenting some more recent developments in fields related to Marshall and his influence, including welfare economics and industrial organization, Marshall's legacy in Cambridge economics, the Chicago school, and beyond. The contributors to this volume range from leading senior scholars in the field to exceptional young scholars, and their contributions illustrates a myriad of ways in which the "new view" of Marshall inspired by Raffaelli's work influences our understanding of the history of economics from the late 19th century onward. This book will be of international interest to scholars working in the history of economic thought, and will also appeal to philosophers of science, methodologists, intellectual historians, and those who specialize in industrial organisation.-- Provided by publisher Introduction 6 Contents 18 List of Contributors 20 List of Figures 22 List of Tables 24 Revisiting Marshall’s Economics 25 Alfred Marshall in the Lower Valdarno 26 1 Introduction 26 2 Origins of a Research Programme 28 3 Marshall in the Post-classical Transition 34 4 Bifurcation: Industrial Districts and Cognitive Evolutionism 42 5 Two Marshalls in Lower Valdarno 51 6 Conclusions 56 References 58 The Organisation of Knowledge and Knowledge as Organisation 61 1 A Personal Perspective 61 2 Marshall’s Theory of Economics 68 3 Andrew Skinner 73 4 Hayek 76 References 81 Raffaelli on Historical Progress in Smith and in Marshall 83 1 Sympathy and Impersonal Relationships in Smith 84 2 Development and Historical Progress in Smith 86 3 Evolution in Marshall 88 4 Historical Progress in Marshall 91 5 Comparison Between Smith and Marshall on Historical Progress 94 References 97 Marshall’s External Economies: Economic Evolution and Patterns of Development 100 1 Introduction 100 2 External Economies and Competitive Equilibrium: Marshall’s Reconciliation Exercise? 102 3 Marshall’s External Economies and the Localisation of Industry 106 4 External Economies and Industrial Districts: A ‘Post-Marshallian’ Analysis? 111 5 Concluding Comment 116 References 117 Economic, Ethical and Political Aspects of Wellbeing: Some Marshallian Insights from His Book on Progress 122 1 Introduction 122 2 The Choice of Economics 123 3 Wellbeing as a Matter of Progress 125 4 The Economic and Ethical Levers of Progress and Wellbeing 128 5 Government and Welfare 133 6 Concluding Remarks 138 References 139 Jevons and Marshall as Humboldtian Scientists 142 1 Jevons on the Method of Diagrams 144 2 Marshall on the Methods of Curves and Diagrams 149 3 Marshall’s Move from Graphs to Narrative 156 4 Jevons and Marshall as Humboldtians 164 References 167 Utilitarianism, the Moral Sciences and Political Economy: Mill-Grote-Sidgwick 169 1 Teaching and Its Reorganisation Before the Moral Sciences Tripos 177 2 The Organisation of the Moral Sciences Tripos 179 3 Henry Sidgwick’s Path to the Knightbridge Chair 185 4 Mill’s Utilitarianism 188 5 And Grote’s Critique 193 6 The First Edition of Sidgwick’s Methods of Ethics 198 References 202 Marshall’s Influence Through the 20th Century 205 Destabilizing Speculation on Organized Markets: Early Perspectives in the Spirit of Marshall 206 1 Introduction 206 2 The Commercial Revolution and Marshall as Part of the Emerging Literature on Organized Speculative Markets 209 3 Amateurs vs. Professional Speculators and the Pitfalls of Easy Access to Markets 212 4 Short-Selling and Options: A Problematic Defence 218 5 Conclusions 221 References 223 Industrial Leadership, Market Power and Long-Term Performance: Marshall’s and Keynes’s Appreciation of American Trusts 226 1 Introduction 226 2 Keynes’s Acquaintance with the United States in the 1930s 227 3 Keynes, the Investor in the US Market and the Critic of Roosevelt’s Legislations 230 4 Marshall’s Teaching and Vision 236 5 The American “Character” 241 6 Comparing Marshall’s and Keynes’s Views on American Capitalism 244 7 Conclusions 246 References 247 Between LSE and Cambridge: Accounting for Ronald Coase’s Fascination with Alfred Marshall 250 1 Introduction 250 2 Biographer 252 2.1 The Travels 253 2.2 The Lectures 254 2.3 Marshall’s Family Background 255 2.3.1 A Mixed Heritage 257 2.3.2 Marshall’s Birthplace 259 2.3.3 Explaining Coase’s Preoccupation 262 2.3.4 Why Was There No Biography? 266 3 LSE Marshallian 268 3.1 The Theory-Fact Interplay 270 3.2 The Scope of Economics 275 3.3 Economists and Economic Policy 278 4 Conclusion 282 References 283 “A Great Economist” and “A Careful Empiricist”: Paul Samuelson’s Attitude Towards Alfred Marshall 288 1 Samuelson and the Age of Marshall 288 2 Foundations of Economic Analysis 289 3 After Foundations 292 4 A Great Economist Who Could Have Been Even Greater 297 References 299 Index 301