Psychology Dictionary of ArgumentsHome
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| Equilibrium: In physics, equilibrium is a state in which the forces acting on an object or system are balanced. This means that the net force is zero, and the object or system is not accelerating. The concept helps to understand how objects and systems behave. It is also used in engineering, chemistry, and economics._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Neoclassical Economics on Equilibrium - Dictionary of Arguments
Harcourt I 23 Equilibrium/Neoclassical economics/Harcourt: Equilibrium to the neoclassical economist, though, is a position towards which an economy is tending to move as time goes by, possibly a reference to Marshall's description of the nature of equilibrium prices in his analysis of supply and demand but now applied to the motion of the system as a whole. It reflects the attempt by neoclassical economists to handle 'time' within their analytical framework. >Equilibrium/Robinson. RobinsonVsNeoclassical economics: Joan Robinson says the approach is fundamentally wrong-headed; an economy cannot get into a position of equilibrium - either it is in one and has been for a long time, or it is not.* If it is in equilibrium, a given item of capital equipment has the same value whether it be valued at its expected future earnings discounted back to the present at the ruling rate of profits, or as work done in order to produce it, cumulated forward to the present at the ruling rate of profits (supposing, for the moment, that equipment is made by labour alone). Rate of profits/capital/investments: : Moreover (…) the rate of profits on capital has a definite meaning and is equal to the expected rate of profits on investment. Complication: With more sophisticated techniques whereby durable capital goods help to make capital goods (and/or circulating ones also help), we have to use a more complicated model in which there are balanced stocks of durable capital goods. Formalization: Used capital goods are treated as one-year-older goods {jointly produced with consumption goods), in order to avoid the puzzle of tracing productive inputs back to the Garden of Eden. * This definition of equilibrium includes the analysis in the theory of economic growth which is associated with the concept of Golden Ages - steady-state, long-run equili- brium growth paths. For a thorough account of this branch of the modern theory of economic growth, see Hahn and Matthews [1964](1), part 1. 1. Hahn, F. H. and Matthews, R. C. O. [1964] 'The Theory of Economic Growth: A Survey', Economic Journal, LXXIV, pp. 779-902._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Neoclassical Economics Harcourt I Geoffrey C. Harcourt Some Cambridge controversies in the theory of capital Cambridge 1972 |
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> Counter arguments against Neoclassical Economics
> Counter arguments in relation to Equilibrium
