Cambridge school-About Cambridge school:
Cambridge School (Cambridgeschool) is the turn of the century, created by the British economist Marshall, a school. As Marshall and his faithful disciples Pigou, Robertson and other long-term teaching at the University of Cambridge, it was called Cambridge school. Also, because its founder, Marshall's "equilibrium price theory" not only inherited the tradition of this period of vulgar economics to explain the value of the cost of production decisions, but also combines the 1870s, with its value of marginal utility to explain the decision of the vulgar doctrine , it is also known as "neoclassical."
Cambridge School - School Profile
Cambridge School is a late 19th early 20th century by the British economist A. Marshall created a school. As Marshall and his faithful disciples AC Pigou, DH Robertson (1890 - 1963) and other long-term teaching at the University of Cambridge, it was called Cambridge school. Also, because the modern bourgeois economists A. Smith, D. Ricardo until the mid-19th century, JS Mill's economics, including the economics of this period, including vulgar, collectively referred to as classical economics, and Cambridge school because of its Marshall, founder of the "equilibrium price" theory not only inherited the tradition of this period to vulgar economics to explain the value of the production costs of the decision, but also combines the 1870s after the marginal utility theory to explain the value of the decision of the vulgar, it is also known "neoclassical."
The spread of this school of economics, including the Marshall, published in 1890, "Principles of Economics" book. Inherit the book since the early 19th century British tradition of vulgar economics, eclectic, eclectic approach with the theory of supply and demand, production costs on the marginal utility theory, marginal productivity theory, etc. together, set up a premise of perfect competition, the "equilibrium price" as the core of a complete system of vulgar economics. The book was published, it was touted as the history of political economy as a "milestone", and Smith's "Nature and Causes of the Wealth of Nations study," and Ricardo's "Principles of Political Economy and Taxation," par. Marshall's theory, through its faithful disciple, in particular, Pigou (who replaced Marshall in 1908 as professor of political economy at Cambridge University until retirement in 1944), in the teaching and writings to expound and spread to form a school, in the 19 century and early 20th century bourgeois economists dominate.
Cambridge school core content of the equilibrium price theory. They determined the law of diminishing marginal utility, demand and the corresponding demand different prices posed by the demand curve, and using the law of increasing marginal cost of production decisions, and different supply and the corresponding supply price of the supply curve of the form, describe a determined the equilibrium price of commodities. They measure the equilibrium price the value of goods on which to place value on the equilibrium price.
In the equilibrium price theory, based on the Cambridge school has also established its own distribution theory, they believe that national income is created by various factors of production, the various factors of production in the size of the share of national income, depending on their supply and demand conditions determined by the equilibrium price. Labor, capital, the demand for land depends on their marginal productivity. Labor supply of labor depends on the "negative effect"; supply of capital depends on the future enjoyment of the capitalists' expectations. " Wage labor supply and demand equilibrium price of labor; interest, capital supply and demand equilibrium price of capital; profit business organization and management of the capitalists and the risks of remuneration; rent prices of agricultural products over the remainder of its production costs, it depends on the marginal land productivity. In addition, the Cambridge school of trying to celebrate the freedom of competition, advocates of laissez-faire, capitalist system that can automatically adjust through market forces to achieve full employment equilibrium. As for the actual existence of unemployment, the wage rate that is mainly the result of the lack of scalability.
As the main representative of the Cambridge school Pigou, in addition to precise, clear statement of the faithful to spread the doctrine of Marshall, but also based on a comprehensive set of welfare economics, known as the father of welfare economics. His departure from the theory of marginal utility base, the greater the amount of income made more equal distribution of national income, the greater the social and economic welfare of the proposition. He also distinguish between "marginal private net value" and "marginal social net value of the" two concepts to explain how to make productive resources in the productive sectors of the configuration to achieve the most appropriate point, so that the maximum total national income, the largest social and economic welfare , which makes the Cambridge school with a strong reformist color.
Cambridge School in monetary theory, the Cambridge school to make money, said the number of known Cambridge equation. Marshall, Pigou 1917, the first argument in this regard formulaic, published in 1922 after Robertson's "Money," a book published in 1923, Keynes's "monetary reform" a book, and Marshall of Cambridge monetary equation Further elucidation of the theory there.In addition, the University of Cambridge Robinson in 1933 published "The economics of imperfect competition", change the "equilibrium price" theory of perfect competition assumption, never perfect competition, analyzing corporate balance output and price decisions, but in the analysis , it still does not transcend Marshall - Pigou theoretical framework.
Since World War I, the British increasingly decline. The twenties the British long-term economic depression, unemployment of unprecedented magnitude. Unprecedented outbreak of 1929 in particular, a deep global economic crisis, the capitalist world in deep trouble, which makes the Cambridge school of economic theory the brink of bankruptcy. Faced with this situation, the Cambridge School of Keynesian originally in 1936 by renegade attitude of the traditional theory, published "Employment, Interest and Money," a book, criticized what he called the "classical school" of Marshall, Pigou's point of view, the establishment of their macroeconomic theory, in order to save the capitalist system in crisis to seek new outlets and theoretical basis.
Cambridge school core content of the equilibrium price theory. They determined the law of diminishing marginal utility, demand and the corresponding demand different prices posed by the demand curve, and using the law of increasing marginal cost of production decisions, and different supply and the corresponding supply price of the supply curve of the form, describe a determined the equilibrium price of commodities. They measure the equilibrium price the value of goods on which to place value on the equilibrium price.
In the equilibrium price theory, based on the Cambridge school has also established its own distribution theory, they believe that national income is created by various factors of production, the various factors of production in the size of the share of national income, depending on their supply and demand conditions determined by the equilibrium price. Labor, capital, the demand for land depends on their marginal productivity. Labor supply of labor depends on the "negative effect"; supply of capital depends on the future enjoyment of the capitalists' expectations. " Wage labor supply and demand equilibrium price of labor; interest, capital supply and demand equilibrium price of capital; profit business organization and management of the capitalists and the risks of remuneration; rent prices of agricultural products over the remainder of its production costs, it depends on the marginal land productivity. In addition, the Cambridge school of trying to celebrate the freedom of competition, advocates of laissez-faire, capitalist system that can automatically adjust through market forces to achieve full employment equilibrium. As for the actual existence of unemployment, the wage rate that is mainly the result of the lack of scalability.
As the main representative of the Cambridge school Pigou, in addition to precise, clear statement of the faithful to spread the doctrine of Marshall, but also based on a comprehensive set of welfare economics, known as the father of welfare economics. His departure from the theory of marginal utility base, the greater the amount of income made more equal distribution of national income, the greater the social and economic welfare of the proposition. He also distinguish between "marginal private net value" and "marginal social net value of the" two concepts to explain how to make productive resources in the productive sectors of the configuration to achieve the most appropriate point, so that the maximum total national income, the largest social and economic welfare , which makes the Cambridge school with a strong reformist color.
Cambridge School in monetary theory, the Cambridge school to make money, said the number of known Cambridge equation. Marshall, Pigou 1917, the first argument in this regard formulaic, published in 1922 after Robertson's "Money," a book published in 1923, Keynes's "monetary reform" a book, and Marshall of Cambridge monetary equation Further elucidation of the theory there.In addition, the University of Cambridge Robinson in 1933 published "The economics of imperfect competition", change the "equilibrium price" theory of perfect competition assumption, never perfect competition, analyzing corporate balance output and price decisions, but in the analysis , it still does not transcend Marshall - Pigou theoretical framework.
Since World War I, the British increasingly decline. The twenties the British long-term economic depression, unemployment of unprecedented magnitude. Unprecedented outbreak of 1929 in particular, a deep global economic crisis, the capitalist world in deep trouble, which makes the Cambridge school of economic theory the brink of bankruptcy. Faced with this situation, the Cambridge School of Keynesian originally in 1936 by renegade attitude of the traditional theory, published "Employment, Interest and Money," a book, criticized what he called the "classical school" of Marshall, Pigou's point of view, the establishment of their macroeconomic theory, in order to save the capitalist system in crisis to seek new outlets and theoretical basis.
