Book contents
- Frontmatter
- Dedication
- Contents
- Preface
- List of Contributors
- Dramatis Personae at the end of 1937
- Introduction and Summary
- Part I The roots
- Part II The approach of the Stockholm School
- 4 Expectation and plan: The microeconomics of the Stockholm School
- 5 Sequence analysis and optimization
- 6 There were two Stockholm Schools
- 7 On formal dynamics: From Lundberg to chaos analysis
- 8 Lundberg, Keynes, and the riddles of a general theory
- Comment
- 9 Macrodynamics and the Stockholm School
- 10 Ohlin and the General Theory
- 11 The monetary economics of the Stockholm School
- 12 The Austrians and the Stockholm School: Two failures in the development of modern macroeconomics?
- 13 The political arithmetics of the Stockholm School
- 14 After the Stockholm School
- Part III The impact of the Stockholm School
- Part IV What remains of the Stockholm School?
- The Stockholm School: A non-Swedish bibliography
Comment
Published online by Cambridge University Press: 05 July 2013
- Frontmatter
- Dedication
- Contents
- Preface
- List of Contributors
- Dramatis Personae at the end of 1937
- Introduction and Summary
- Part I The roots
- Part II The approach of the Stockholm School
- 4 Expectation and plan: The microeconomics of the Stockholm School
- 5 Sequence analysis and optimization
- 6 There were two Stockholm Schools
- 7 On formal dynamics: From Lundberg to chaos analysis
- 8 Lundberg, Keynes, and the riddles of a general theory
- Comment
- 9 Macrodynamics and the Stockholm School
- 10 Ohlin and the General Theory
- 11 The monetary economics of the Stockholm School
- 12 The Austrians and the Stockholm School: Two failures in the development of modern macroeconomics?
- 13 The political arithmetics of the Stockholm School
- 14 After the Stockholm School
- Part III The impact of the Stockholm School
- Part IV What remains of the Stockholm School?
- The Stockholm School: A non-Swedish bibliography
Summary
The main contribution of Claes Berg's paper is to disentangle the various models in the ninth chapter of Lundberg's 1937 dissertation and to provide an explicit formulation of the equations underlying his calculations. By doing this, Berg can, in a pedagogical and convincing manner, compare Lundberg's models to those of Samuelson, Metzler, Harrod, and Domar.
It is interesting to note that this explicit spelling out of the equations also provides a clue to the explanation of why the models of the latter authors were quickly accepted in the standard economics literature, whereas those of Lundberg never found their way into the textbooks. By imposing non-negativity constraints (i.e., investment can never turn negative), the mathematical structure – which was in principle quite simple – became in practice so complicated that it only lent itself to numerical solutions. Thus the simple analytical solutions, which are necessary for models to be useful in textbooks, were lacking in Lundberg's work, although the economic insights were not.
It is refreshing to note that Berg does not argue that Lundberg “discovered” the Samuelson model of the interaction between the accelerator and the multiplier, or the Harrod-Domar model of economic growth, or the Metzler model of the inventory cycle. This seems to be a very reasonable attitude; the question of scientific priority is an intricate, and in most cases even meaningless, enterprise.
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- Information
- The Stockholm School of Economics Revisited , pp. 228 - 230Publisher: Cambridge University PressPrint publication year: 1991
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