Abstract
The traverse refers to the movement of the economy outside equilibrium. It requires a consideration of how an economy may achieve equilibrium and how it may navigate toward a new one if conditions change. Analysis of these themes, from the classical economists onward, leads to the conclusion that it is difficult to envisage any useful role for equilibrium theory in the absence of some evidence that there are forces in the economy that propel it to equilibrium, without influencing the position to which the economy is gravitating toward. Complicating factors, emphasized in the post-Keynesian literature, include the existence of path dependency, hysteresis, cumulative causation, and the evolutionary nature of economic change.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Bain, J. 1956. Barriers to New Competition. Cambridge: Harvard University Press.
Blecker, R. A. 2013 “Long-Run Growth in Open Economies: Export-led Cumulative Causation or a Balance-of-payments Constraint?” In The Oxford Handbook of Post-Keynesian Economics, Volume 1: Theory and Origins, eds. G. C. Harcourt and Peter Kriesler, 390–414. Oxford: Oxford University Press.
Cross, R. 1993a. “Hysteresis and Post Keynesian Economics.” Journal of Post Keynesian Economics 15: 305–8.
Cross, R. 1993b. “On the Foundations of Hysteresis in Economic Systems.” Economics and Philosophy 9: 53–74.
Davidson, P. 1993. “The Elephant and the Butterfly: or Hysteresis and Post Keynesian Economics.” Journal of Post Keynesian Economics 15: 309–22.
Eltis, W. 1985. “Ricardo on Machinery and Technological Unemployment.” In The Legacy of Ricardo, ed. G. Caravale, 257–84. Oxford: Basil Blackwell.
Fisher, F. M. 1983. Disequilibrium Foundations of Equilibrium Economics, Cambridge: Cambridge University Press.
Forstater, M., and M. Murray. 2009. “Circular and Cumulative Causation in the Classics: Anticipations, Family Resemblances, and the Influence on Post Keynesian Economics.” In The Foundations of Non-equilibrium Economics: The Principle of Circular and Cumulative Causation, ed. S. Berger, 154–71. London: Routledge.
Gandolfo, G. 1971. Mathematical Methods and Models in Economic Dynamics. Amsterdam: North Holland.
Gehrke, C., and H. Hagemann. 1996. “Efficient Traverses and Bottlenecks: A Structural Approach.” In Production and Economic Dynamics, ed. M. Landesmann and R. Scazzieri, 140–66. Cambridge: Cambridge University Press.
Goodwin, R. M. 1982. Essays in Economic Dynamics. London: Macmillan.
Hahn, F. 1966. “Equilibrium Dynamics with Heterogeneous Capital Goods.” Quarterly Journal of Economics 80: 633–46.
Halevi, J. 1992. “Accumulation and Structural Disequilibrium.” In Beyond the Steady State: A Revival of Growth Theory, ed. J. Halevi, D. Laibman, and E. Nell, 264–88. Houndmills: Macmillan Academic and Professional.
Halevi, J., and P. Kriesler. 1991. “Kalecki, Classical Economics and the Surplus Approach.” Review of Political Economy 3: 79–92.
Halevi, J., and P. Kriesler. 1992. “An Introduction to the Traverse in Economic Theory.” In Beyond the Steady State: A Revival of Growth Theory, ed. J. Halevi, D. Laibman, and E. Nell, 225–34. Houndmills: Macmillan Academic and Professional.
Hall, R. L., and C. J. Hitch. 1939. “Price Theory and Business Behaviour.” Oxford Economic Papers 2: 12–45.
Harcourt, G. C. 1995. “Markets, Madness and a Middle Way.” In Harcourt, Capitalism, Socialism and Post-Keynesianism, 9–24. Aldershot: Edward Elgar.
Harcourt, G. C. 2001. 50 Years a Keynesian and Other Essays. London: Macmillan.
Harcourt, G. C. 2006. The Structure of Post-Keynesian Economics: The Core Contributions of the Pioneers. Cambridge: Cambridge University Press.
Harcourt, G. C. 2008. “The Contributions of Tom Asimakopulos to Post Keynesian Economics.” In Keynes and Macroeconomics after 70 Years, ed. L. W. Wray and M. Forstater, 64–79. Aldershot: Edward Elgar.
Hart, N. 2012. Equilibrium and Evolution: Alfred Marshall and the Marshallians. Houndsmills: Palgrave Macmillan.
Hart, N. 2013. Alfred Marshall and Modern Economics: Equilibrium Theory and Evolutionary Economics. Houndsmills: Palgrave Macmillan.
Henry, J., and M. Lavoie. 1997. “The Hicksian Traverse as a Process of Reproportioning: Some Structural Dynamics.” Structural Change and Economic Dynamics 8: 157–75.
Hicks, J. R. 1939. Value and Capital. Oxford: Clarendon Press.
Hicks, John 1965. Capital and Growth. Oxford: Oxford University Press.
Hicks, John 1973. Capital and Time. Oxford: Clarendon Press.
Hicks, John 1979. Causality in Economics. New York: Basic Books.
Hicks, John 1980–81. “IS-LM: An Explanation.” Journal of Post Keynesian Economics 3: 19–54.
Hicks, John 1985. Methods of Dynamic Economics. Oxford: Oxford University Press.
Kaldor, N. (1938) 1960. “Stability and Full Employment.” In Kaldor, Essays on Economic Stability and Growth, 103–19. London: Duckworth.
Kaldor, N. 1966. Causes of the Slow Rate of Economic Growth of the United Kingdom. Cambridge: Cambridge University Press.
Kaldor, N. 1970. “The Case for Regional Policies.” Scottish Journal of Political Economy 18: 337–48.
Kaldor, N. 1972. “The Irrelevance of Equilibrium Economics.” Economic Journal 82: 1237–55.
Kaldor, N. 1975. “What Is Wrong with Economic Theory?” Quarterly Journal of Economics 89 (3): 347–57.
Kaldor, N. 1985. Economics without Equilibrium. New York: M.E. Sharpe.
Kaldor, N. 1996. Causes of Growth and Stagnation in the World Economy. Cambridge: Cambridge University Press.
Kalecki, M. 1939. Essays in the Theory of Economic Fluctuations. New York: Farrar & Rinehart.
Kalecki, M. (1954) 1991. The Theory of Economic Dynamic. London: Allen and Unwin. Reprinted in Collected Works of Michał Kalecki, ed. J. Osiatyński, vol. 2, Capitalism: Economic Dynamics, 207–338. Oxford: Clarendon Press.
Kalecki, M. (1968) 1991. “Trend and the Business Cycle.” In Collected Works of Michał Kalecki, ed. J. Osiatyński, vol. 2, Capitalism: Economic Dynamics, 435–50. Oxford: Clarendon Press.
Katzner, D. W. 1993. “Some Notes on the Role of History and the Definition of Hysteresis and Related Concepts in Economic Analysis.” Journal of Post Keynesian Economics 15: 323–45.
Kerr, P., and R. Scazzieri. 2013 “Structural Economic Dynamics and the Cambridge Tradition”. In The Oxford Handbook of Post-Keynesian Economics, Volume 1: Theory and Origins, eds. G. C. Harcourt and Peter Kriesler, 257–87. Oxford: Oxford University Press.
Keynes, J. M. (1930) 1971. A Treatise on Money. Vol. 1: The Pure Theory of Money. Reprinted as vol. 5 of The Collected Writings of John Maynard Keynes, ed. D. Moggridge. London: Macmillan for the Royal Economic Society.
Keynes, J. M. 1936. The General Theory of Employment, Interest and Money. London: Macmillan.
Kirman, A. 2006. “Demand Theory and General Equilibrium: From Explanation to Introspection, a Journey down the Wrong Road.” History of Political Economy 38 (supplement): 246–80.
Kriesler, P. 1999. “Harcourt, Hicks and Lowe: Incompatible Bedfellows?” In Keynes, Post-Keynesianism and Political Economy: Essays in Honour of Geoff Harcourt, ed. C. Sardoni and P. Kriesler, 400–417. London: Routledge.
Kriesler, P., and J. Nevile. 2012. “Dynamic Keynesian Economics: Cycling Forward with Harrod and Kalecki.” Cambridge Journal of Economics 36: 405–17.
Lange, O. 1967. “The Computer and the Market.” In Socialism, Capitalism and Economic Growth: Essays Presented to Maurice Dobb, ed. C. H. Feinstein, 158–61. Cambridge: Cambridge University Press.
Lavoie, M. 1996. “Traverse, Hysteresis, and Normal Rates of Capacity Utilization in Kaleckian Models of Growth and Distribution.” Review of Radical Political Economics 28: 113–47.
Lavoie, M., and P. Ramirez-Gaston. 1997. “Traverse in a Two-Sector Kaleckian Model of Growth with Target-Return Pricing.” Manchester School of Economic and Social Studies 65 (2): 145–69.
Lowe, A. 1952. “A Structural Model of Production.” Social Research 19: 135–76.
Lowe, A. 1955. “Structural Analysis of Real Capital Formation.” In Capital Formation and Economic Growth, ed. A. Moses, 581–634. Princeton, NJ: Princeton University Press.
Lowe, A. 1976. The Path of Economic Growth. Cambridge: Cambridge University Press.
Lucas, R. E. 1980. “Methods and Problems in Business Cycle Theory.” Journal of Money, Banking and Credit 21: 696–715.
Lucas, R. E. 1983. Studies in Business-Cycle Theory. Cambridge: MIT Press.
Marshall, A. [1890] 1920. Principles of Economics. 8th edition. London: Macmillan.
Means, G. C. 1939. The Structure of the American Economy. Washington, DC: U.S. Government Printing Office.
Metcalfe, J. S. 2007b. “Alfred Marshall’s Mecca: Reconciling the Theories of Value and Development.” Economic Record 83: S1–S22.
Modigliani, F. 1959. “New Developments on the Oligopoly Front.” Journal of Political Economy 66: 215–32.
Myrdal, G. 1965. Economic Theory and Underdeveloped Regions. London: University Paperbacks.
Myrdal, G. 1968. Asian Drama: An Inquiry into the Poverty of Nations. New York: Twentieth Century Fund.
Naqvi, K. A. 1963. “Machine-Tools and Machines: A Physical Interpretation of the Marginal Rate of Saving.” Indian Economic Review 6: 19–28.
Nell, E. J. 1998. The General Theory of Transformational Growth: Keynes after Sraffa. Cambridge: Cambridge University Press.
Nelson, R., and S. Winter. 1982. An Evolutionary Theory of Economic Change. Cambridge: Harvard University Press.
O’Hara, P. 2009. “The Principle of Circular and Cumulative Causation: Myrdal, Kaldor and Contemporary Heterodox Political Economy.” In The Foundations of Non-Equilibrium Economics: The Principle of Circular and Cumulative Causation, ed. S. Berger, 91–105. London: Routledge.
Pasinetti, L. L. 1981. Structural Change and Economic Growth: A Theoretical Essay on the Dynamics of the Wealth of Nations. Cambridge: Cambridge University Press.
Pasinetti, L. L. 1993. Structural Economic Dynamics: A Theory of the Economic Consequences of Human Learning. Cambridge: Cambridge University Press.
Raj, K. N., and A. K. Sen. 1961. “Alternative Patterns of Growth under Conditions of Stagnant Export Earnings.” Oxford Economic Papers 13: 43–52.
Ricardo, D. [1817] 1951. The Works and Correspondence of David Ricardo. Vol. 1: Principles of Political Economy and Taxation. Ed. P. Sraffa with the collaboration of M. H. Dobb. Cambridge: Cambridge University Press.
Rizvi, S. A. T. 2006. “The Sonnenschein-Mantel-Debreu Results after Thirty Years.” History of Political Economy 38:228–45.
Robinson, J. [1953] 1975. “Imperfect Competition Revisited.” Economic Journal 63:579–93. Reprinted in Collected Economic Papers, 2nd edition, vol. 2: 222–38. Oxford: Basil Blackwell.
Robinson, J. [1974] 1979. “History versus equilibrium.” In Robinson, Collected Economic Papers, 2nd edition, vol. 5: 48–68. Oxford: Basil Blackwell.
Robinson, J. [1973] 1979. “What Has Become of the Keynesian Revolution?” In Robinson, Collected Economic Papers, 2nd edition, vol. 5: 168–77. Oxford: Basil Blackwell.
Rosser, J. B., Jr. 2002. “Complex Dynamics and Post Keynesian Economics.” In The Economics of Demand-Led Growth, ed. M. Setterfield, 74–98. Cheltanham: Edward Elgar.
Rosser, J. Barkley, Jr. 2013. “A Personal View of Post-Keynesian Elements in the Development of Economic Complexity Theory and Its Application to Policy” In The Oxford Handbook of Post-Keynesian Economics, Volume 2: Critiques and Methodology, eds. G. C. Harcourt and Peter Kriesler, 198–201. Oxford: Oxford University Press.
Samuelson, P. A. 1947. Foundations of Economic Analysis. Cambridge: Harvard University Press.
Samuelson, P. A. 1988. “Mathematical Vindication of Ricardo on Machinery.” Journal of Political Economy 96(2): 274–82.
Sardoni, C. 1981. “Multi-sectoral Models of Balanced Growth and the Marxian Schemes of Expanded Reproduction.” Australian Economic Papers 20:383–97.
Schumpeter, J. A. 1954. History of Economic Analysis. New York: Oxford University Press.
Shackle, G. L. S. 1982. “Sir John Hicks’ ‘IS-LM an Explanation’: A Comment.” Journal of Post Keynesian Economics 4(3): 435–38.
Sen, A. K. (1962) 1970. “Interest, Investment and Growth.” Rewritten in Growth Economics, ed. A. K. Sen, 219–32. Harmondsworth: Penguin.
Setterfield, M. 1997. “History versus Equilibrium and the Theory of Economic Growth.” Cambridge Journal of Economics 21:365–78.
Setterfield, M. 2002. “A Model of Kaldorian Traverse: Cumulative Causation, Structural Change and Evolutionary Hysteresis.” In The Economics of Demand-Led Growth, ed. M. Setterfield, 215–33. Cheltanham: Edward Elgar.
Setterfield, M. 2013. “Endogenous Growth: A Kaldorian Approach”. In The Oxford Handbook of Post-Keynesian Economics, Volume 1: Theory and Origins, eds. G. C. Harcourt and Peter Kriesler, 231–56. Oxford: Oxford University Press.
Solow R. M. 1984. “Mr Hicks and the Classics.” Oxford Economic Papers, n.s, 36 (Supplement: Economic Theory and Hicksian Themes): 13–25.
Sraffa, P. 1960. Production of Commodities by Means of Commodities: Prelude to a Critique of Economic Theory. Cambridge: Cambridge University Press.
Sweezy, P. 1942. The Theory of Capitalist Development: Principles of Marxian Political Economy. New York: Monthly Review Press.
Sylos Labini, P. 1962. Oligopoly and Technical Progress. Cambridge: Harvard University Press.
Thirlwall, A. P. 1983. “A Plain Man’s Guide to Kaldor’s Growth Laws.” Journal of Post Keynesian Economics 5(3): 345–58.
Toner, P. 1999. Main Currents in Cumulative Causation: The Dynamics of Growth and Development. Basingstoke: Macmillan.
Veblen, T. B. 1898. “Why Is Economics Not an Evolutionary Science?” Quarterly Journal of Economics 12:373–97.
Velupillai, K. V. 2013. “Post-Keynesian Precepts for Nonlinear, Endogenous, Nonstochastic, Business Cycle Theories”. In The Oxford Handbook of Post-Keynesian Economics, Volume 1: Theory and Origins, eds. G. C. Harcourt and Peter Kriesler, 415–442. Oxford: Oxford University Press.
Young, A. A. 1928. “Increasing Returns and Economic Progress.” Economic Journal 38:527–40.
Copyright information
© 2016 Joseph Halevi, G. C. Harcourt, Peter Kriesler and J. W. Nevile
About this chapter
Cite this chapter
Halevi, J., Hart, N., Kriesler, P. (2016). The Traverse, Equilibrium Analysis, and Post-Keynesian Economics. In: Post-Keynesian Essays from Down Under Volume IV: Essays on Theory. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-47529-9_20
Download citation
DOI: https://doi.org/10.1057/978-1-137-47529-9_20
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-47528-2
Online ISBN: 978-1-137-47529-9
eBook Packages: Economics and FinanceEconomics and Finance (R0)