Alfred Marshall's equilibrium theory. A critical analysis of its relevance for modern economics (eBook, PDF)
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Bachelor Thesis from the year 2024 in the subject Economics - Micro-economics, grade: 1,0, Otto-von-Guericke-University Magdeburg, language: English, abstract: In the economy, the concept of equilibrium has consistently been an object of debate and caused numerous disputes. Therefore, it is crucial to constantly enhance and shed light on the interpretation within the historical age. Especially, if the discourse around the notion of equilibrium is in the context of the theoretical mathematical deliberations and the dominant perception of humanity in various historical periods. Significant examp...
Bachelor Thesis from the year 2024 in the subject Economics - Micro-economics, grade: 1,0, Otto-von-Guericke-University Magdeburg, language: English, abstract: In the economy, the concept of equilibrium has consistently been an object of debate and caused numerous disputes. Therefore, it is crucial to constantly enhance and shed light on the interpretation within the historical age. Especially, if the discourse around the notion of equilibrium is in the context of the theoretical mathematical deliberations and the dominant perception of humanity in various historical periods. Significant examples are, for instance, the generating wealth during the classical era (1750-1820) by Adam Smith¿s "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776) and maximizing utility through subjective assessment during the neoclassical era. The neoclassical concept of the omniscient human being and the classical concept of homo economicus, who is primarily self-interested but also socially useful, are based on contrasting assumptions about human behaviour. The principles for the construction of an equilibrium vary in the short- or long-term perspective and the impact of the quantity or price. Additionally, the establishment of an equilibrium concept can prioritize the interconnections among markets (general equilibrium) or the notion of progress in particular fields (partial equilibrium). It will be intriguing to analyze the impact or methodological resemblance of previous ideas in contemporary economics. The proposed research addresses the concepts of Alfred Marshall (1842-1924). Once Marshall's economic concepts have been thoroughly articulated, it is necessary to inquire about the extent to which these ideas are included in modern economics and their significance for the field. This research will examine this subject using the Sraffian critique as its foundation. The question of whether Marshall is a modern classic or a classic of modernity must be dealt with in any case (see Rieter 2008 in Starbatty 2008, pp. 135-158). Furthermore, it will explore how Marshall's ideas can contribute to the development of contemporary economic theories and their impact on present-day economics.
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