Retrospectives: The Origins of the Representative Agent

James E. Hartley

Journal of Economic Perspectives, 1996, vol. 10, issue 2, 169-177

Abstract: This paper examines Alfred Marshall's invention of the representative firm. Marshall first used the representative firm in order to describe an industry supply curve for an industry with heterogeneous firms. Despite Marshall's limited use of the notion, the representative agent was extensively criticized as an ephemeral, useless construct that was unable to account for economic growth and that ignored important heterogeneities. The criticisms succeeded in banishing the representative agent from economics. These initial criticisms are also shown to apply to modern uses of the representative agent as well.

JEL-codes: B13 B21 B31 D21 (search for similar items in EconPapers)
Date: 1996
Note: DOI: 10.1257/jep.10.2.169
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Citations: View citations in EconPapers (24)

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