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Ralph Turvey (1927–2012)

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Abstract

Middleton surveys the life and writings of the LSE economist, Ralph Turvey (1927–2012), who made contributions to macroeconomics and applied welfare economics. In a three-part career comprising the LSE proper (from outstanding undergraduate to Reader, 1944–1960), LSE secondment to various public bodies, national and international (1960–1989), and then ‘retirement’ (1989–2010), Turvey published at least 150 items. He played a major role in embedding marginal cost pricing in Britain’s then nationalised industries, in developing economic analysis of the electricity sector and, with Thatcherite privatisation and beyond, researching the economics of utility regulation. For Turvey, economic theory must serve practical ends, and his career was devoted to expanding the domain of policy problems for which economics offered rational solutions.

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Notes

  1. 1.

    Howson (2011: 653) notes that Turvey ‘had come to LSE in October 1944 as a second year student, having passed the Intermediate examination externally, so that by 1946/7 he was effectively a [post]graduate student’.

  2. 2.

    Maurice Peston, who matriculated in 1949, said in his obituary of Turvey (Peston 2012: 32): ‘In the immediate post-war period, Ralph was regarded as the most brilliant LSE undergraduate. When I arrived there as a student not many years later, he was already a legend, not least because of his final examination papers. Each of his answers was set out on less than one side of a sheet of paper. Richard Sayers, the professor of money and banking, told me that the examiners did not see how they could possibly award him a first. It then dawned on them that his answers were, in fact, perfect’. John Dunning (2009: 58), a research student at UCL who also attended LSE lectures in 1951/1952, said of Turvey at this period that ‘most students believed [he] was born clutching an economics textbook in his hand – an advanced one at that!’.

  3. 3.

    Turvey would contribute to Lindahl’s Festschrift (Turvey 1956a) and an appreciation for Ekonomisk Tidskrift (Turvey 1960a). Since 1976 the latter has been the Scandinavian Journal of Economics, such title being used for all references at the end of this chapter.

  4. 4.

    Turvey (1960a: 5–6) covers this period and is the nearest we have to a published autobiographical fragment.

  5. 5.

    Between 1950–67 the IEA published twelve volumes of English translations of important foreign journal articles. As Haberler said in the Foreword to the first (Peacock et al. 1951: v): ‘In the field of economics the dissemination of new ideas and theories is seriously retarded by the lack of ability, or at least facility, in reading contributions in foreign languages’ with ‘Economists in English-speaking countries…especially guilty of what is going on in other languages’. Turvey was one of the editors for the first ten volumes.

  6. 6.

    Initially, Joint Deputy Chairman, 1 September 1968–31 October 1969 (Fels 1972: Appendix A).

  7. 7.

    A Google Scholar search conducted on 5 April 2017 has 1008 cites, followed by Turvey (1963a) at 405 and Turvey and Anderson (1977) at 312.

  8. 8.

    Turvey was on the shortlist to become the first Director of the Central Policy Review Staff established within the Cabinet Office in 1971 and disbanded in 1983 (Agar 2011: 222). This probably prompted his move into the private sector as the Turvey family remember his complaint about ‘excessive political interference in government appointments’ (e-mail from Nick Turvey, 13 March 2014).

  9. 9.

    The LSE Library contains a collection of these pieces (Turvey 2008).

  10. 10.

    Peacock (1982) has written further on LSE economics between 1948 and 1956. See also De Marchi (1988), Lipsey (2000), Alford (2009), Howson (2011: especially Chapters 19–20), Forder (2014), and Bollard (2016: Chapters 6–8).

  11. 11.

    In the Preface to the first edition, Baumol recorded that Turvey wrote most of Chapter 8 (‘Period Analysis’), the appendix to Chapter 5 (‘Uncertainty and the Equilibrium of the Firm’) and ‘made his influence felt throughout the volume’ (Baumol 1970: xi). In the Preface to the second edition, he began by ‘correcting a fundamental omission from the…First Edition’, that Turvey was not listed as joint author, and noted that ‘I shall not venture to speculate whether his categorical refusal represented excessive modesty or an act of judicious criticism’ (ibid.: ix).

  12. 12.

    Turvey (1951a: 534–535; italics in original) defined inflation as the ‘process resulting from competition in attempting to maintain total real income, total real expenditure and/or total output at a level which has become physically impossible or attempting to increase any of them to a level which is physically impossible’.

  13. 13.

    In the Preface to Turvey (1960b), he acknowledges the electronic digital stored-program computer UNIVAC as having done the computation for Table V which reported multiple correlation results.

  14. 14.

    In closing, Turvey (1960b: 107)—who is here citing Baumol’s (1959: 1) strictures on methodology—noted: ‘I have endeavoured to set out a simple model which is suitable for incorporation in textbooks. The approach followed is a simple and common-sense one whose relevance to the real world is direct and obvious. I have shown how it can be applied and tested and have pointed out some of the directions in which it might be developed. The analysis has not built “irrefutable theorems into an empty edifice of compound tautologies” but has employed “questionable premises…to obtain questionable conclusions” which seems to me to be the right way to approach economic phenomena’.

  15. 15.

    Turvey was one of a number of academic economists in Whitehall in the 1950s and 1960s who, seconded from their universities, sought to improve decision-making through greater employment of basic economic tools: for example, Ian Little, who was Deputy Director of the Economic Section (1953–1955) and whose The Price of Fuel (Little 1953) began to formalise some of the issues raised in the Ridley Report (HMSO 1952) about how there could be increased competition and an improved relationship between prices and relevant costs; David Henderson, at the Treasury (1957–1958) and the Ministry of Aviation (1964–1966), whose strictures on public-sector investment still repay close reading, as does his later condemnation, in his Reith Lecture, of the continuance of ‘Do-It-Yourself Economics’ (ersatz economics) in public policy (Henderson 1965, 1986); and Michael Posner at the Ministry of Power (1966–1967), where the dominance of coal interests constrained the adoption of marginal cost pricing. Posner (1973) would embody much of what he had learnt from his Whitehall experience together with clear guidance for policy makers of how to conduct an economically rational fuel policy.

  16. 16.

    Howson (2011: 909) records developments in 1963–1964 at LSE which culminated in Turvey not being appointed to a Professorship despite the initial recommendation of the Appointment Committee that he be so honoured. He resigned in April 1964, though later would become a Visiting Professor and eventually Emeritus.

  17. 17.

    This period throws up something of a curiosity. Aubrey Jones, who chaired the NBPI throughout its life (1965–1971), published a number of pieces on the Board, not least in his widely cited Penguin Special on the new inflation but made no reference to Turvey save to Turvey (1971c) (see Jones 1973: 108, fn.*).

  18. 18.

    From 1967 onwards, it was government policy that all major price increases in the nationalised industries be referred to the Board. The Board commissioned Cambridge’s Department of Applied Economics to investigate the effectiveness of this approach. Its report contains frequent references to Turvey’s work (see Fels 1972: xi, 214, 216, 219, 221) and his publications (Turvey 1969, 1971c).

  19. 19.

    ‘Scicon London Economist for Overseas Project’, The Economist, 21 December 1974: 107. The salary offered was upwards of £5,000; by comparison a fixed-term research post at LSE offered the salary scale £2118–£3990 plus £399 London allowance (‘Appointments’, The Economist, 3 May 1975: 133).

  20. 20.

    Turvey’s last Who’s Who entry records: ‘Economic Advr, then Chief Statistician, ILO, 1975–89; Dir, Dept of Labour Information and Statistics, ILO, until 1989’.

  21. 21.

    CRI (2010) provides a complete publication and information list for the Centre.

  22. 22.

    Turvey’s Who’s Who entry records New Zealand, 1991; Britain, 1992–1994; and Canada and Sweden, 1992–2006.

  23. 23.

    See http://www.frontier-economics.com/about-us.com. Frontier Economics was founded in 1999 and is worker-owned, with a former Treasury Permanent Secretary and head of the Government Economic Service, Gus O’Donnell, as its current chairman.

  24. 24.

    For contemporary discussions of regulatory capture in the context of British public utility regulation, see Parker (2002: especially 499–500). In a major work, Moran (2003: 105) has argued that Littlechild’s RPI-X formulation embodied a ‘determination to contain discretion, and therefore the dangers of special interest politics…[being] a powerful response to the old diseased club system that had wreaked such havoc in the government of the nationalised industries’. See also Mueller and Carter (2007) on the place of Turvey in the new networks of engineers, economists and management accountants (a hybridisation) which occurred in the post-privatisation, regulated utilities.

References

Main Works by Ralph Turvey

  • Items indicated * were selected by Turvey as the publications he wished to record as significant in his entry in Who’s Who in Economics (Blaug 1999: 1117). A full bibliography is available upon request.

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  • *Break, G.F. and R. Turvey (1964). Studies in Greek Taxation. Athens: Center of Planning and Economic Research.

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  • Turvey, R. (1963c). ‘On Investment Choices in Electricity Generation’. Oxford Economic Papers, 15(3): 278–286.

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  • Turvey, R. (1964a). ‘Marginal Cost Pricing in Practice’. Economica, New Series, 31(4): 426–432.

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  • *Turvey, R. (1964b). ‘Optimization and Suboptimization in Fishery Regulation’. American Economic Review, 54(2): 64–76.

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  • Turvey, R. (1965). ‘Does the Rate of Interest Rule the Roost?’. Chapter 9 in F.H. Hahn and F.P.R. Brechling (eds) The Theory of Interest Rates. London: Macmillan: 164–172.

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  • *Turvey, R. (1968a). Optimal Pricing and Investment in Electricity Supply: An Essay in Applied Welfare Economics. London: George Allen & Unwin.

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  • Turvey, R. (ed.) (1968b). Public Enterprise: Selected Readings. Harmondsworth: Penguin Books.

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  • Turvey, R. (1968c). ‘Peak-Load Pricing’. Journal of Political Economy, 76(1): 101–113.

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  • Turvey, R. (1969). ‘Marginal Cost’. Economic Journal, 79(2): 282–299.

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  • *Turvey, R. (1971a). Economic Analysis and Public Enterprises. London: George Allen & Unwin.

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  • *Turvey, R. (1971b). Demand and Supply. London: George Allen & Unwin.

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  • Turvey, R. (1971c). ‘Recent Contributions to the Theory of Marginal Cost Pricing: A Reply’. Economic Journal, 81(2): 371–375.

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  • Turvey, R. (1971d). ‘Some Features of Incomes Policy, and Comments on the Current Inflation’. Chapter 12 in H.G. Johnson and A.R. Nobay (eds) The Current Inflation. London: Macmillan: 196–201.

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  • Turvey, R. (1971e). ‘Rates of Return, Pricing and the Public Interest’. Economic Journal, 81(3): 489–501.

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  • Turvey, R. (1974). ‘How to Judge when Price Changes will Improve Resource Allocation’. Economic Journal, 84(4): 825–832.

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  • *Turvey, R. (1976). ‘Analysing the Marginal Cost of Water Supply’. Land Economics, 52(2): 158–168.

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  • *Turvey, R. (1994). ‘London Lifts and Hydraulic Power’. Transactions of the Newcomen Society, 65(1): 147–164.

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  • Turvey, R. and H. Brems (1951). ‘The Factor and Goods Markets’. Economica, New Series, 18(1): 57–68.

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  • *Turvey, R. and E. Cook (1974). Report to the Government of Pakistan on the Prices of Essential Commodities. London: Scicon.

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Middleton, R. (2019). Ralph Turvey (1927–2012). In: Cord, R.A. (eds) The Palgrave Companion to LSE Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-58274-4_28

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  • DOI: https://doi.org/10.1057/978-1-137-58274-4_28

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