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Unformatted text preview: Alfred Marshall
July 26, 1842 July 13, 1924 Born on July 26, 1842 in London Son of a cashier at the Bank of England Rebelled against his father's plans for his life Graduated in mathematics Planned to pursue molecular physics He became a professor in 1868 Wanted to improve the math part of economics and also make it more understandable to common people Married one of his students in 1877 He became a principal at the University of Bristol Marshall's Approach to Economics
1. 2. 3. 4. 5. 6. Use mathematics as shorthand language, rather than as an engine of inquiry Keep to them till you have done Translate into English Then illustrate by examples that are important in real life Burn the mathematics If you can't succeed in 4, burn 3. This last I did often Marshall's Work Contributed to the "marginalist revolution" Demand is based on the law of diminishing marginal utility "Price elasticity of demand" Producer and consumer surplus Marshall's Consumer and Producer Surplus Wage Elasticity of Labor Demand
1. 2. 3. 4. The greater the substitutability of other factors for labor, the greater will be the elasticity of demand for labor. The greater the price elasticity of product demand, the greater will be the elasticity of labor demand. The larger the proportion of total production costs accounted for by labor, the greater will be the elasticity of labor demand. The greater the elasticity of the supply of other inputs, the greater the elasticity of demand for labor. Marshall's Work Marshall was influenced by Adam Smith, David Ricardo, Thomas Robert Malthus, and John Stuart Mill He didn't believe that his work with the marginalist revolution overthrew the work of the classical economists "We might as reasonably dispute whether it is the upper or the lower blade of a pair of scissors that cuts a piece of paper, as whether value is governed by utility or cost of production. It is true that when one blade is held still, and the cutting is effected by moving the other, we may say with careless brevity that the cutting is done by the second; but the statement is not strictly accurate, and is to be excused only so long as it claims to be merely a popular and not a strictly scientific account of what happens " Alfred Marshall (1890) Principles of Economics Regarded as his most important work Meant to cover two volumes Never managed to finish the second volume Later Life Marshall's health began to deteriorate in the 1880's Had to retire in 1908 Opposed women being entered into degree work at Cambridge University Died in his home in Cambridge, England on July 13, 1924 Marshall's Lasting Effect Principles of Economics (1890), Economics of Industry (1879), Elements of Economics of Industry (1892), Industry and Trade (1919) Created the British Economics Association Influence on government policy Often regarded as one of the fathers of modern economics ...
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This note was uploaded on 04/17/2008 for the course ECON 311 taught by Professor Benesh during the Spring '08 term at Wisc Eau Claire.
- Spring '08