Marshall on equilibrium and time: a reconstruction

Michel De Vroey

The European Journal of the History of Economic Thought, 2000, vol. 7, issue 2, 245-269

Abstract: This paper's aim is to offer a reconstruction of the Marshallian conception of equilibrium and time. Its main features are as follows. First, I argue that the hallmark of this conception is to posit an interrelationship between two equilibrium concepts — market-day and normal equilibrium. I claim that they are part and parcel and cannot be analysed separately. Second, my reconstruction gives a central role to the market period. Third, I argue that the so-called short and long-period equilibrium concepts refer to the same unique concept of normal equilibrium. Fourth, I argue that Marshall's value theory admits the effective existence of disequilibrium states. A Marshallian disequilibrium refers to cases where market-day and normal values fail to coincide, this state of affairs going along, however, with market clearing. I also propose an alternative interpretation of Marshall's corn model wherein perfect information is considered the linchpin of achieving equilibrium. Finally, I argue that my reconstruction avoids a series of interpretative pitfalls.

Keywords: Marshall Equilibrium Short And Long Period (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (6)

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Working Paper: Marshall on Equilibrium and Time. A Reconstruction (1997)
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DOI: 10.1080/096725600361807

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