Augusto Graziani on the walrasian capital formation model

Author/s Giacomo Costa
Publishing Year 2015 Issue 2014/112
Language English Pages 22 P. 31-52 File size 94 KB
DOI 10.3280/STE2014-112003
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

In the Sixties of the last century there was in Italy a re-kindling of interest for Walrasian theory. Several economists wrote on it, expounding opposing opinions. This partly reflected the hectic ideological climate of that decade, and Graziani could not but be influenced by it. Yet his book Equilibrio generale ed equilibrio macroeconomico testifies to his deep intellectual curiosity and searching attitude. The key problem was the consistency of the Walrasian capital formation model. The dominant opinion was that of over-determinacy. Graziani opted for under-determinacy. He provided two arguments, the first of which was based on a misinterpretation of Walras’ Law, the second, an ingenious one, would have led, if properly completed, to determinacy. His criticisms of over-determinacy are penetrating and constructive: he suggested a promising dynamic over-determinacy thesis which integrates the markets for newly produced and for second hand capital goods.

Keywords: Walrasian capital formation model; Italian Economics; Walrasian vs Austrian capital theory; capital in general equilibrium; indeterminacy, determinacy, over-determinacy in the Walrasian capital model; dynamic over-determinacy in the Walrasian capital formation model; expectations in the Walrasian capital formation model.

Jel codes: B13, D50, D92, E13

  1. Avestis P., Sawyer M. (2000), Augusto Graziani, in A biographical dictionary of dissenting economists, Second Edition. Edward Elgar, Cheltenham, pp. 254-263.
  2. Dorfman R., Samuelson P., Solow R. (1958), Linear programming and economic analysis, McGraw-Hill, New York.
  3. Ferretti M. (1989), Un modello walrasiano d’equilibrio di lungo periodo, “Giornale degli economisti e Annali di economia”, Settembre-Ottobre, pp. 415-447.
  4. Filippi, F. (1980), Morishima’s interpretation of Keynes: some comments and criticisms, “Zeitschrift für Nationalökonomie”, 3-4, pp. 335-67.
  5. Gay A. (1967), Esistenza e caratteristiche dell’equilibrio in modelli di tipo walrasiano, “Rivista di Politica Economica”, VIII-IX, pp. 3-39.
  6. Graziani A. (1965), Equilibrio generale ed equilibrio macroeconomico. Edizioni scientifiche italiane, Napoli.
  7. Graziani A., Trezza B. (1969), Alcune recenti critiche alla teoria walrasiana dell’accumulazione, “Giornale degli economisti e Annali di Economia”, Anno XXVIII, 3-4, pp. 238-266.
  8. Hahn F. H. (1966), Equilibrium dynamics with heterogeneous capital goods, “Quarterly Journal of Economics”, LXXX (Nov.), pp. 65-94.
  9. Harcourt G. C. (1972) Some Cambridge controversies in the theory of capital, Cambridge University Press, New York.
  10. Hicks J. R. (1939), Value and Capital, Oxford University Press, Oxford.
  11. Malinvaud E. (1953), Capital accumulation and efficient allocation of resources, “Econometrica”, XXI, pp. 233-68.
  12. Montesano A. (1970), Il sistema teorico dell’equilibrio economico e la coerenza della teoria walrasiana della capitalizzazione, I, “Giornale degli economisti e Annali di economia”, 29, pp. 704-45.
  13. Montesano A. (1971), Il sistema teorico dell’equilibrio economico e la coerenza della teoria walrasiana della capitalizzazione, II, “Giornale degli economisti e Annali di economia”, 30, pp. 427-67.
  14. Morishima M. (1960), Existence of solution to the Walrasian system of capital formation, “Zeitschrift für Nationalökonomie”, 20, pp. 238-43.
  15. Morishima M. (1964), Equilibrium stability and growth, Oxford University Press, Oxford.
  16. Morishima M. (1969), Theory of Economic Growth, Oxford University Press, Oxford.
  17. Morishima M. (1977), Walras’ Economics, Cambridge University Press, Cambridge.
  18. Morishima M. (1989), Ricardo’s economics, Cambridge University Press, Cambridge.
  19. Morishima M. (1996), Dynamic Economic Theory, Cambridge University Press, Cambridge. Napoleoni C. (1965), L’equilibrio economico generale: studio introduttivo, Boringhieri, Torino.
  20. Schumpeter J. A. (1954), History of economic analysis, Oxford University Press, Oxford.
  21. Shell K., Stiglitz J. (1967), The allocation of investment in a dynamic economy, “Quarterly Journal of Economics”, LXXXI (Nov.), pp. 592-609.
  22. Solow R. (1961-2), A note on Uzawa’s two-sector model of economic growth, “Review of Economic Studies”, 29, pp. 48-50.
  23. Wicksell K. (1958), Böhm-Bawerk’s theory of capital, in Selected papers on economic theory. Allen&Unwin, London.
  24. Zaghini E. (1967), Saggi sull’accumulazione di capitale nei modelli di equilibrio generale. Edizioni dell’Ateneo, Roma.
  25. Zaghini E. (1975), A note on capital goods durability in the Walrasian theory of capital formation and credit, “Zeitschrift für Nationalökonomie”, 35, pp. 155-159.

  • The modern Italian debate on the Walrasian theory of capitalization (1960-1971) Giovanni Michelagnoli, in HISTORY OF ECONOMIC THOUGHT AND POLICY 1/2021 pp.131
    DOI: 10.3280/SPE2021-001006

Giacomo Costa, Augusto Graziani on the walrasian capital formation model in "STUDI ECONOMICI " 112/2014, pp 31-52, DOI: 10.3280/STE2014-112003