Marginalist Revolution

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The Marginalist Revolution refers to the establishment of what has been called Neoclassical economic theory. The dating of this "revolution" is commonly ascribed to 1871-74, when the concept of diminishing marginal utility was introduced, independently and almost simultaneoulsy, by William Stanley Jevons, Carl Mengerand Léon Walras, to analyse the character of demand -- thus the term "Marginalist".

The Marginalist Revolution set the foundations for the Neoclassical theory of value, which replaced the "Classical" theory of value of Adam Smith, David Ricardo, John Stuart Mill and Karl Marx. However, the task of establishing the Neoclassical theory as the dominant approach to economics took quite some time, it can be roughly divided in three steps: