Alfred Marshall Economic theories

January 31, 2017
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Alfred MarshallAlfred Marshall was an English economist (1842-1924), and the true founder of the, which combined the study of wealth distribution of the with the of the and the . Professor at Cambridge, he was the author of “Principles of Economics”, 1890, which became the most widely read manual in microeconomics in his time. This book, which is his major work, established a radical change on how economics were taught. Instead of just writing long pages, Marshall draw diagrams throughout the chapters, allowing a better understanding of economic theories and models, such as ’s, or an analysis on the differences between fixed and variable cost, and the importance of time periods when analyzing these matters. In fact, Marshall is the precursor of today’s .

Of unquestionable educational clarity and filled with profound social principles, Marshall contributed to economic science with concepts such as and the further development of other subjects, surpluses for instance. Although he did not invent the term nor did he initiate this theory, he did made a clearer separation and definition of different kind of surpluses, such as consumer’s and producer’s .

Also in his “Principles of Economics”, he stated the differences between internal and external, as well as a diagram which depicted the fluctuations in supply and demand that took place before arriving to a steady state, a . This equilibrium was reached by means of changing amounts, not prices, as stated.

He is also considered as founder of the, where he taught economics until his retirement. Other renowned economists belonging to this school are and .

Next, Francis Y. Edgeworth, who was a brilliant mathematician, bent on providing the mathematical framework needed to further a lot of the concepts that we are flying around. He is responsible for the maths behind Edgeworth boxes, contract curves and indifference curves. This allowed the mathematics to catch up with the theories that were being out forward, and proved a great service to those that had gone before and who came after him.

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