Book contents
- Pasinetti and the Classical Keynesians
- Pasinetti and the Classical Keynesians
- Copyright page
- Contents
- Contributors
- Foreword
- Introduction
- 1 Reality (and Not Simply Abstract Rationality) as the Starting Point of Economic Theory
- 2 Economic Logic with Internal Consistency (and Not Only Formal Rigour)
- 3 Malthus and the Classics (Not Walras and the Marginalists) as the Major Inspiring Source in the History of Economic Thought
- 4 Non-ergodic (in Place of Stationary, Timeless) Economic Systems
- 5 Causality vs. Interdependence
- 6 Macroeconomics before Microeconomics
- 7 Disequilibrium and Instability (Not Equilibrium) as the Normal State of the Industrial Economies
- 8 Necessity of Finding an Appropriate Analytical Framework for Dealing with Technical Change and Economic Growth
- 9 A Strong, Deeply Felt, Social Concern
- 10 Why the Classic-Keynesian Trend May Be of Interest to a Young Scholar Today
- 11 Pasinetti’s Separation Theorem
- Author Index
- References
5 - Causality vs. Interdependence
A Distinction That Conveys a World’s View
Published online by Cambridge University Press: 17 February 2022
Book contents
- Pasinetti and the Classical Keynesians
- Pasinetti and the Classical Keynesians
- Copyright page
- Contents
- Contributors
- Foreword
- Introduction
- 1 Reality (and Not Simply Abstract Rationality) as the Starting Point of Economic Theory
- 2 Economic Logic with Internal Consistency (and Not Only Formal Rigour)
- 3 Malthus and the Classics (Not Walras and the Marginalists) as the Major Inspiring Source in the History of Economic Thought
- 4 Non-ergodic (in Place of Stationary, Timeless) Economic Systems
- 5 Causality vs. Interdependence
- 6 Macroeconomics before Microeconomics
- 7 Disequilibrium and Instability (Not Equilibrium) as the Normal State of the Industrial Economies
- 8 Necessity of Finding an Appropriate Analytical Framework for Dealing with Technical Change and Economic Growth
- 9 A Strong, Deeply Felt, Social Concern
- 10 Why the Classic-Keynesian Trend May Be of Interest to a Young Scholar Today
- 11 Pasinetti’s Separation Theorem
- Author Index
- References
Summary
The chapter aims to show how many conceptual points of the classical-Keynesian analysis are essentially based on a suitable interaction between causal and interdependent relationships. Throughout the analysis, the terms ‘causality’ and ‘interdependence’ are interpreted following the interpretation given by Herbert Simon as analytical characteristics of the relations between the magnitudes involved in the theory, rather than a feature of economic reality. A meticulous work of revisiting the analytical formulations of some important foundations of both classical and Keynesian theories has been presented here to bring to the surface the sequential or the simultaneous nature of the determination of the main variables and the economic meaning attached to these analytical properties.
Keywords
- Type
- Chapter
- Information
- Pasinetti and the Classical KeynesiansNine Methodological Issues, pp. 112 - 156Publisher: Cambridge University PressPrint publication year: 2022
References
Bellino, E. (2004) ‘On Sraffa’s Standard Commodity’, in Cambridge Journal of Economics, 28(1), pp. 121–132.CrossRefGoogle Scholar
Bellino, E. and Nerozzi, S. (2017) ‘Causality and Interdependence in Pasinetti’s Works and in the Modern Classical Approach’, in Cambridge Journal of Economics, 41(6), pp. 1653–1684.Google Scholar
Bharadwaj, K. (1991) ‘History versus Equilibrium’, in Rima, I. H. (ed.) The Joan Robinson Legacy, Armonk, M. E. Sharpe, pp. 80–104.Google Scholar
Ciccone, R. (1998) ‘Surplus’, in Kurz, H. D. and Salvadori, N. (eds.) The Elgar Companion to Classical Economics, (L–Z), Cheltenham and Northampton, Edward Elgar, pp. 440–445.Google Scholar
Cord, R. (2007) (ed.) The Palgrave Companion to Cambridge Economics, London, Palgrave-MacMillan.Google Scholar
Courvisanos, J. (2003) ‘Innovation’, in King, J. E. (ed.) The Elgar Companion to Post Keynesian Economics, Cheltenham and Northampton, Edward Elgar, pp. 191–195.Google Scholar
Davidson, P. (1991) Controversies in Post Keynesian Economics, Aldershot, Edward ElgarGoogle Scholar
Davidson, P. (2000) ‘There Are Differences between Kalecki’s Theory of Employment and Keynes’s General Theory of Employment, Interest and Money’, in Journal of Post Keynesian Economics, 23(1), pp. 3–25.CrossRefGoogle Scholar
Dow, S. C. (2007) ‘Cambridge’s Contribution to Methodology in Economics’, in Cord, R. (ed.) The Palgrave Companion to Cambridge Economics, London, Palgrave Macmillan, pp. 27–50.Google Scholar
Eatwell, J. (1975) ‘Mr. Sraffa’s Standard Commodity and the Rate of Exploitation’, in The Quarterly Journal of Economics, 89(4), pp. 543–555.CrossRefGoogle Scholar
Eatwell, J. (1981) ‘“Poscritto” to the Italian translation of Eatwell (1975)’, in Panizza, R. and Vicarelli, S. (eds.) Valori e prezzi nella teoria di Marx, Torino, Einaudi, pp. 70–73.Google Scholar
Henry, J. F. (2003) ‘Time in Economic Theory’, in King, J. E. (ed.) The Elgar Companion to Post Keynesian Economics, Cheltenham and Northampton, Edward Elgar, pp. 341–346.Google Scholar
Feiwel, G. R. (ed.) (1989), Joan Robinson and Modern Economic, Theory, Houndmills, Basingstoke, Hampshire and London, Macmillan.Google Scholar
Garegnani, P. (1984) ‘Value and Distribution in the Classical Economists and in Marx’, in Oxford Economic Papers, 36(2), pp. 291–325.CrossRefGoogle Scholar
Garegnani, P. (2007) ‘Professor Samuelson on Sraffa and the Classical Economics’, in The European Journal of the History of Economic Thought, 14(2), pp. 181–242.Google Scholar
Halevi, J. Harcourt, G. C. Kriesler, P. and Nevile, J. (eds.) (2016) Post-Keynesians Essays from Down Under – Volume I: Essays on Keynes, Harrod and Kalecki, London, Palgrave Macmillan.Google Scholar
Harcourt, G. C. (2006) The Structure of Post-Keynesian Economics, the Core Contributions of the Pioneers, Cambridge, Cambridge University Press.CrossRefGoogle Scholar
Harcourt, G. C. and Kriesler, P. (2016) ‘The Enduring Importance of The General Theory’, in Halevi, J. Harcourt, G. C. Kriesler, P. and Nevile, J. (eds.) Post-Keynesians Essays from Down Under – Volume I: Essays on Keynes, Harrod and Kalecki, London, Palgrave Macmillan, pp. 15–33.Google Scholar
Hicks, J. R. (1973) ‘Recollections and Documents’, in Economica, New Series, 40(157), pp. 2–11.Google Scholar
Kaldor, N. (1955–1956) ‘Alternative Theories of Distribution’, in The Review of Economic Studies, 23(2), pp. 83–100.CrossRefGoogle Scholar
Kaldor, N. (1972) ‘The Irrelevance of Equilibrium Economics’, in Economic Journal, 82(328), pp. 1237–1255.CrossRefGoogle Scholar
Kalecki, M. (1935) ‘A Macro-Dynamic Theory of Business Cycles’, in Econometrica, 3(1), pp. 327–344.CrossRefGoogle Scholar
Kalecki, M. (1942) ‘A Theory of Profits’, in Economic Journal, 52(206/207), pp. 258–267.CrossRefGoogle Scholar
Kalecki, M. (1968) ‘Trend and Business Cycles Reconsidered’, in Economic Journal, 78(310), pp. 263–276.CrossRefGoogle Scholar
Kalecki, M. (1971) Selected Essays on the Dynamics of the Capitalist Economy, Cambridge, Cambridge University Press.Google Scholar
Keynes, J. M. (1936) The General Theory of Employment, Interest and Money, London, Macmillan.Google Scholar
Keynes, J. M. (1937) ‘The General Theory of Employment’, in Quarterly Journal of Economics, 51(2), pp. 209–223.Google Scholar
Keynes, J. M. (1973) The Collected Writings of John M. Keynes, Vol. XIV, The General Theory and After, Part. II, Defence and Development, Moggridge, D. (ed.) London and Basingstoke, Macmillan St. Martin’s Press.Google Scholar
King, J. E. (ed.) (2003) The Elgar Companion to Post Keynesian Economics, Cheltenham and Northampton, Edward Elgar.Google Scholar
King, J. E. (2007) ‘Nicholas Kaldor (1908–1986)’, in Cord, R. (ed.) The Palgrave Companion to Cambridge Economics, London, Palgrave-MacMillan, pp. 747–766.Google Scholar
Kregel, J. (1976) ‘Economic Methodology in the Face of Uncertainty: The Modelling Methods of Keynes and the Post Keynesians’, in Economic Journal, 86(342), pp. 209–225.Google Scholar
Kregel, J. (1991) ‘On the Generalization of the General Theory’, in Rima, I. H. (ed.) The Joan Robinson Legacy, Armonk, M. E. Sharpe, pp. 104–109.Google Scholar
Kriesler, P. (2016a) ‘Kalecki’s Pricing Theory Revisited’, in Halevi, J. Harcourt, G. C. Kriesler, P. and Nevile, J. (eds.) Post-Keynesians Essays from Down Under – Volume I: Essays on Keynes, Harrod and Kalecki, London, Palgrave Macmillan, pp. 141–160.Google Scholar
Kriesler, P. (2016b) ‘Microfoundations: A Kaleckian Perspective’, in Halevi, J. Harcourt, G. C. Kriesler, P. and Nevile, J. (eds.) Post-Keynesians Essays from Down Under – Volume I: Essays on Keynes, Harrod and Kalecki, London, Palgrave Macmillan, pp. 161–176.Google Scholar
Kriesler, P. (2016c) ‘Was Kalecki an “Imperfectionist”? Davidson on Kalecky’, in Halevi, J. Harcourt, G. C. Kriesler, P. and Nevile, J. (eds.) Post-Keynesians Essays from Down Under – Volume I: Essays on Keynes, Harrod and Kalecki, London, Palgrave Macmillan, pp. 209–215.Google Scholar
Kriesler, P. (2016d) ‘Answers for Steedman’, in Halevi, J. Harcourt, G. C. Kriesler, P. and Nevile, J. (eds.) Post-Keynesians Essays from Down Under – Volume I: Essays on Keynes, Harrod and Kalecki, London, Palgrave Macmillan, pp. 216–223.Google Scholar
Kurz, H. D. and Salvadori, N. (1995) Theory of Production – A Long-Period Analysis, Cambridge, Cambridge University Press.CrossRefGoogle Scholar
Lavoie, M. (2006) Introduction to Post-Keynesian Economics, Houndmills, Basingstoke, Hampshire and New York, Palgrave Macmillan.CrossRefGoogle Scholar
Lavoie, M. (2015) Post-Keynesian Economics: New Foundations, Cheltenham and Northampton, Edward Elgar.Google Scholar
Marcuzzo, M. C. (2003) ‘Joan Robinson’s Economics’, in King, J. E. (ed.) The Elgar Companion to Post Keynesian Economics, Cheltenham and Northampton, Edward Elgar, pp. 211–215.Google Scholar
Marshall, A. (1890) Principles of Economics, 9th (variorum) ed., with annotations by Claude William Guillebaud, London, Macmillan.Google Scholar
Nevile, J. W. (2016) ‘What Keynes Would Have Thought of the Development of IS-LM’, in Halevi, J. Harcourt, G. C. Kriesler, P. and Nevile, J. (eds.) Post-Keynesians Essays from Down Under – Volume I: Essays on Keynes, Harrod and Kalecki, London, Palgrave Macmillan, pp. 50–68.Google Scholar
Parrinello, S. (2013), ‘Causality and Normal States in Economics and Other Disciplines’, in The European Journal of the History of Economic Thought, 23(1), pp. 1–24.Google Scholar
Pasinetti, L. L. (1955) ‘La funzione del consumo in alcuni modelli econometrici applicati ai cicli economici’, in Rivista Internazionale di Scienze Sociali, 26(5), pp. 397–421.Google Scholar
Pasinetti, L. L. (1956) ‘La funzione degli investimenti in alcuni modelli econometrici applicati ai cicli economici’, Rivista Internazionale di Scienze Sociali, 28(2), pp. 125–151.Google Scholar
Pasinetti, L. L. (1957) ‘Un nuovo modello econometrico per la rappresentazione del sistema economico statunitense’, Rivista Internazionale di Scienze Sociali, 28(1), pp. 57–62.Google Scholar
Pasinetti, L. L. (1965 [2019]) ‘Causalità e interdipendenza nell’analisi econometrica e nella teoria economica’, in Annuario dell’Università Cattolica del Sacro Cuore, A.A. 1964–1965, pp. 231–250; English translation: ‘Causality and Interdependence in Econometric Analysis and in Economic Theory’, in Structural Change and Economic Dynamics, 49, pp. 357–363.Google Scholar
Pasinetti, L. L. (1974) Growth and Income Distribution: Essays in Economic Theory, Cambridge, Cambridge University Press.Google Scholar
Pasinetti, L. L. (1997) ‘The Marginal Efficiency of Investments’, in Harcourt, G. C. and Riach, P. A. (eds.) A ‘Second Edition’ of the General Theory, vol. i, London, Routledge, pp. 198–218.Google Scholar
Pasinetti, L. L. (2007) Keynes and the Cambridge Keynesians: A Revolution in Economics to Be Accomplished, Cambridge, Cambridge University Press.Google Scholar
Ricardo, D. (1817) On the Principles of Political Economy and Taxation, London, John Murray; used edition: Sraffa, P. (ed.), (1951–1973), vol. i.Google Scholar
Robinson, J. V. (1974 [1979]) ‘History versus Equilibrium’, Thames Papers in Political Economy, London, Thames Polytechnic. Rept., in Collected Economic Papers, vol. 5, Oxford, Blackwell, pp. 48–58.Google Scholar
Robinson, J. V. (1979) The Generalisation of the General Theory and Other Essays, London and Basingstoke, Macmillan.Google Scholar
Robinson, J. V. (1980) What Are the Questions? And Other Essays, Armonk, M. E. Sharpe.Google Scholar
Seton, F. (1957) ‘The “Transformation Problem”’, in The Review of Economic Studies, 24(3), pp. 149–160.CrossRefGoogle Scholar
Setterfield, M. (2003), ‘Effective Demand’, in King, J. E. (ed.) The Elgar Companion to Post Keynesian Economics, Cheltenham and Northampton, Edward Elgar, pp. 105–112.Google Scholar
Simon, H. (1953) ‘Causal Ordering and Identifiability’, in Hood, W. C. and Koopmans, T. C. (eds.) Studies in Econometric Method, Cowles Commission, New York, John Wiley and Sons; London, Chapman and Hall, pp. 49–74.Google Scholar
Smith, A. (1776 [1976]) An Inquiry into the Nature and Causes of the Wealth of Nations, The Glasgow edition of the Works and Correspondence of Adam Smith, Campbell, R. H. and Skinner, A. S. (eds.) Oxford, Clarendon Press.Google Scholar
Sraffa, P. (ed.) (1951–1973) The Works and Correspondence of David Ricardo, 11 vols., Cambridge, Cambridge University Press.Google Scholar
Sraffa, P. (1960) Production of Commodities by Means of Commodities – Prelude to a Critique of Economic Theory, Cambridge, Cambridge University Press.Google Scholar
von Bortkiewicz, L. (1906–1907) ‘Wertrechnung und Preisrechnung im Marxchen System’, in Archiv für Sozialwissenschaft und Sozialpolitik, 23, pp. 1–50; 25, pp. 10–51 and 445–488.Google Scholar
Young, A. (1928) ‘Increasing Returns and Economic Progress’, in The Economic Journal, 38(152), pp. 527–542.Google Scholar
Walras, L. (1874 [1954)]) Elements d’économie politique pure, ou théorie de la richesse, Lausanne, L. Corbaz & Cie Éditeurs; English translation: Jaffé, W. (ed.) Elements of Pure Economics, or the Theory of Social Wealth, Homewood, Richard D. Irvin.Google Scholar
Webster, E. (2003) ‘Profits’, in King, J. E. (ed.) The Elgar Companion to Post Keynesian Economics, Cheltenham and Northampton, Edward Elgar, pp. 294–298.Google Scholar