The Palgrave Companion to LSE Economics Robert A Cord Editor The Palgrave Companion to LSE Economics Editor Robert A Cord Researcher in Economics London, UK ISBN 978-1-137-58273-7 ISBN 978-1-137-58274-4  (eBook) https://doi.org/10.1057/978-1-137-58274-4 Library of Congress Control Number: 2018943850 © The Editor(s) (if applicable) and The Author(s) 2018 The author(s) has/have asserted their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover credit: Stephen Finn/Alamy Stock Photo This Palgrave Macmillan imprint is published by the registered company Springer Nature Limited The registered company address is: The Campus, Crinan Street, London, N1 9XW, United Kingdom For Helen and David Introduction This is a volume about the economics and economists associated with the London School of Economics (LSE) It is the second in a series to be published by Palgrave examining the many and varied contributions made by important centres of economics With only a very few exceptions, the focus of most history of economic thought studies, at least in terms of books,1 has been on schools of thought Such an approach provides valuable insights into how competing schools interact and how some come to predominate, for whatever reason and length of time, while others fall out of fashion or indeed never attain any particular notoriety However, a key deficiency of such a modus operandi is that it often fails to illuminate the many processes and tensions that can and occur at the level of the individual university, the personnel of which may be fighting internal battles for supremacy while at the same time trying to establish external hegemony Each volume in the series will consist of two parts The first will contain a set of chapters which will consider the contributions made by a centre where these contributions are considered to be especially important, and this subjects to a mixture of personal preferences and soundings from those who know better The second, longer part will be made up of chapters discussing the contributions of individual economists attached to a particular centre ‘Attached’ is the crucial word Some economists are easy to identify with a single institution as they may, for example, have spent their whole academic careers at it Those who have moved from institution to institution 1 Articles are of course another matter vii viii     Introduction are the more difficult case One way forward in these instances is to place an economist in the institution where they carried out their most important work, although this, in its turn, carries with it the danger of disagreement over what ‘their most important work’ was or is perceived to be and how this has changed over time Another factor perhaps worthy of consideration is an economist’s education Where such an education has been received at the knee of a master, to what extent has this influenced the subsequent work of the noted pupil and how should this be considered when that pupil has flown the nest and settled at another institution? Issues of leadership style, discipleship, loyalty, access to publication outlets and to financing also enter the frame Finally, there are issues of practicality, including space constraints and unavailability of contributors, among others Given this matrix of possibilities, disagreement about who should be in which volume is inevitable However, I hope that the outrage will not be too great given the overarching goal of the series The next volume in the series will examine the University of Oxford Robert A Cord Contents Part I  Themes in LSE Economics LSE and Econometrics Jim Thomas Economic History at the London School of Economics and Political Science: A View from the Periphery 35 Colin M Lewis Accounting and the Influence of Economics at LSE 79 Christopher J Napier Business History at LSE: An Empiricist Voice 113 Leslie Hannah LSE’s Contributions to the Economics of Social Policy 145 Howard Glennerster Economica and LSE Economics 165 Jim Thomas ix x     Contents Part II  Some LSE Economists Edwin Cannan (1861–1935) 197 Keith Tribe Arthur Lyon Bowley (1869–1957) 215 Adrian Darnell William Henry Beveridge (1879–1963) 239 Atsushi Komine 10 R.H Tawney (1880–1962) 263 Noel Thompson 11 Hugh Dalton (1887–1962) 289 John E King 12 Frank Walter Paish (1898–1988) 311 Robert A Cord 13 Arnold Plant (1898–1978) 329 Robert A Cord 14 Lionel Robbins (1898–1984) 347 Susan Howson 15 Friedrich Hayek (1899–1992) 373 Peter J Boettke and Ennio E Piano 16 Abba P Lerner (1903–1982) 399 Warren Young, Daniel Schiffman and Yaron Zelekha 17 John R Hicks (1904–1989) 431 Harald Hagemann 18 Henry Phelps Brown (1906–1994) 463 Peter A Riach 19 Evan Durbin (1906–1948) 487 Catherine Ellis Contents     xi 20 R.G.D Allen (1906–1983) 515 Jim Thomas 21 Richard Sidney Sayers (1908–1989) 533 Alec Cairncross and Charles Goodhart 22 Ronald H Coase (1910–2013) 555 Alain Marciano 23 A.W.H Phillips (1914–1975) 579 James Forder 24 Ezra J Mishan (1917–2014) 615 Euston Quah and Yew-Kwang Ng 25 James Durbin (1923–2012) 631 Andrew Harvey and David Bartholomew 26 Michio Morishima (1923–2004) 641 Naoki Matsuyama 27 John Denis Sargan (1924–1996) 667 David F Hendry and Peter C B Phillips 28 Ralph Turvey (1927–2012) 697 Roger Middleton 29 Richard G Lipsey (1928–) 723 Max Steuer 30 Richard Layard (1934–) 743 Richard Jackman 31 Charles Goodhart (1936–) 765 Donald Kohn 32 Meghnad Desai (1940–) 791 P N (Raja) Junankar Index    943 policy changes 602 policy making 589 price flexibility 597 price of labour 591 prison camp 581 prisoner of war camps 584 problem of identification 603 promotion of inflationist policy 579 proportional, integral and derivative control 603 rapid price increase 592 rate of change of unemployment 592 research 596, 604 simultaneously estimating and controlling system 601 six ranges of unemployment 592 stabilisation issues 596 stabilisation policy 594, 597, 605 stability properties 598 stable or falling prices 594 statistical inference 600 sterile debate 588 stocks and flows 588 systems of lagged dependencies 599 teaching of econometrics 581 Tooke Professor 580 unemployment 590, 591, 595, 600 unpublished 600 wage change 595, 600, 605 wage index 592 wage-push 592 wages 591 rise 590 wartime experiences 582 Phillips-Friedman-Phelps critique 594 philosophy Kingley Hall 734 Piercy, William 340 Pigou, A.C 171, 290, 378, 812 capital levy 300 general structure of capitalism 304 unemployment 252 welfare economics 361 Pigovian taxes 777, 778 Piketty, Thomas 297, 737 Pissarides, Christopher A 744, 857 aggregate demand effects 884 austerity 886 balanced growth 865 business cycles 871 capitalisation effect 883 competitive markets 862 continuous time 867 cyclical implications of model 873 determinants of unemployment 858 DMP model 861, 882 economic exchange 861 economic theory of growth 866 education and human capital 871 efficiency of search 871 endogenous job destruction 858, 865 endogenous job search 871 endogenous variable 875 entry cost 887 equilibrium labour demand 858 Equilibrium Unemployment Theory 857, 858, 865, 871, 881, 884, 887 exogenous fixed entry cost 886 exogenous wages 869 first-best optimum 879 fixed cost 887 free entry equilibrium 869 free-entry equation for firms 869 frictional approach 862 frictional market 863 frictional unemployment 859 frictions 864 frictions role 873 Greek crisis 858, 886 Handbook of Labour Economics 859 Handbook of Macroeconomics 859 human capital 872 income taxes 881 944     Index influences 861 informational capital 862 inter-regional mobility of labour 866 investment and physical capital 871 job asset value 868 job creation 879 job destruction 860, 871, 874 job destruction rate 875 labour market 858, 863, 869 congestion 858 equilibrium 886 flow approach 862 participation 871, 872 reallocation 882, 883 theory 878 labour relocation shock 870 learning by trading 865 long-term growth of real variables 872 macroeconomic model 864 macroeconomics 866 main works 887, 888 matching function 859, 865 matching function block 873 matching function 866 matching model 871 matching shocks 870 matrix of analysis 859 medium-run unemployment rate 858 minimum wage 882 model on hiring and vacancies qualitative implications 873 model-generated macroeconomic volatility 875 modelling of British economy 866 modelling of matching functions 886 models of sectoral TFP growth 883 negative efficiency result 881 new open position 868 non-degenerate distribution of wages 863, 865 origin 861 partial equilibrium 872 perfect markets 862 policy 878 analyses 878 debates 878 instruments 881 intervention 880 management 886 qualitative implications 874 quantitative analysis 873 random search 864 reallocation of labour 859 search frictions 869, 886 search markets 862 search theory 860–863, 878 second-best optimum 879 second-rank optimality 880 sectoral relocation of labour 866 skill de-cumulation 865 skill re-accumulation 865 supply framework 858 Sveriges Riksbank Prize 861 tax and policy 871 technological change 883 technology adoption 872 theory of stable allocations 861 unemployment compensation 881 unemployment models 884 unemployment protection 882 wage bargaining 870 wage dispersion 864 wage-setting institutions 858 welfare 871 worker’s level of discouragement 872 Plant, Arnold 84–88, 91, 92, 104, 115, 116, 198, 329, 375, 432, 728 advantages of copyright 334 African studies 329 analysis of copyright 336 analysis of patents 336 apartheid 339 articles 338 Index    945 BCom degree 330 broadcasting 338 business administration 330, 341 business finance 331 Cape Town 331 career 330 Chairman of Advertising Standards Authority 332 civil servant 332 collecting data 341 common sense approach 560 competition 339 competitive system coordinated by prices 566 consumer sovereignty 341 contributions to theoretical economics 332 copyright 334, 335, 342 monopoly 334 books 329, 333 criticism 335 economic analysis of property rights 333 economics of Africa 338 exceptional cases 336 factory organisation 331 Gernsternberg Scholarship in Economics and Political Science 330 history of copyright law 334 Hume’s influence 333 immigration 339, 340 importance of competition 342 important papers 341 industry group 557 institutions interest in 560 intellectual property 338 interests 329 life 330 LSE Department of Business Administration 332, 341 LSE Economics Department 332 main works 343, 344 member of Cinematograph Films Council 332 Monopolies and Restrictive Practices 338 monopoly 152, 332, 334, 337 argument 336 opposition to interference 339 patent system 336 patents 343 patents for inventions 329, 332, 335 ‘pay as you view’ television 338 Piercy influence 340 practical approach to economics 335 prevent emigration 340 private property 342 property rights 332, 337 public administration 331 relationship between consumers and producers 341 research 341 royalties 334 State intervention 342 teaching of business administration 340 trade secrets 337 transport economics 331 Poincare, Henri 641 Poissons’s Law 867 Policy concern 161 educational 159 equality-oriented 626 nature of static system dynamics and terms of rules traditionalists 160 Politica 170 Political economy 53, 56, 160, 201, 366, 559 Political Economy Club 250 Political science 57 946     Index Political Science Quarterly 412 Politics domestic 50 economics of 160 Pollard, Sidney 39, 40, 546, 547 Pope, Peter 104 Popper, Karl 9, 361, 731 Posner, Richard 556 Postan, Michael 46, 63–65, 69 Postel-Vinay, Natacha 54 Potter, Jim 48 Poverty 55, 149, 255, 256, 798, 851 alleviation of 415, 754, 797, 810, 811, 820 avoidance of 156 Bowley’s studies 225 causes of 36, 224, 240, 265 consequences of 63 developing countries 160 evidence of 224 measure 150, 151, 798 Power, Eileen 58, 59, 61–65, 69, 71, 115 Medieval English Nunneries 60 Medieval People 60 The Wool Trade in English Medieval History 60 Power, Michael 102 Power-Postan medieval history seminar 60, 62 Presence of first order (AR1) 14 Present value (PV) 94, 95 Prest, Alan 147, 155 Price 88, 94, 95, 97, 99, 152, 298, 301 See also Inflation equilibrium 863, 864 flexibility 597, 756, 846 fluctuations 175 future 90 market 222 relative 388 rigidity 885 sale 649, 650 system 389, 390, 566 epistemological foundations 390 Problems of Social Policy 145 Product market environment 474 Production function 625 Productivity 151, 468 Profit 79, 80, 90, 645 Property rights 337 See also Plant, Arnold Proportional sacrifice 298 Prosopographical research 121 Public administration 57 Public finance 305 Public ownership 492 Public policy 160, 877 adoption of happiness 758 Public spending 147, 154, 155 Pure economics 644 Pure theory 727 Q Quantitative analyses 41 Quantitative easing (QE) 785 Quantitative macroeconomic theory 876 Quantity theory of money 535 Quarterly Journal of Economics 165, 167 Quasi-markets 159 R Radcliffe Committee 540 See also Sayers, Richard Sidney Radcliffe Report 533, 534, 768 Radicalism 51 Random search approach 864 Ratan Tata Foundation 223 Rationality 726 Reader, William 123 Real wage overhang 474, 475 Real-cost analysis 405 Index    947 Reformation 269, 271 Reformers 56 Regressions 637 Replacement cost (RC) 94, 95 Repurchase agreement (RP) market 784 Research Center in Entrepreneurial History 116 Restrictive labour practices 468 Revealed preference theory 452 Ricardo effect 441, 454 Ricardo, David 37, 202 diminution of gross income 438 dynamic law of distribution 655 propositions on machinery 438 Rignano, Eugenio 296 Ritschl, Albreht 54, 131 Robbins Committee 158, 746 Robbins seminar 586 Robbins, Lionel 3, 4, 11, 56, 70, 87, 88, 92, 104, 117, 152, 153, 198, 203, 233, 248, 253, 266, 291, 292, 329, 347, 488, 580, 604, 669, 724, 727 aggregate demand 362 An Essay on the Nature and Significance of Economic Science 203, 599, 730 Austrian macroeconomics 355 Austrian trade cycle theory 356 Autobiography 364, 433 career 348 Central Economic Intelligence Service 359 Chairman of the Court of Governors of LSE 364 collection of papers 364 Commodity plan 360 Comparative Economic Theory 351 Comparative lectures 351 complete international planning 357 consumption limiting 359 criticisms of a priorism 358 Currency and Banking Debate 363 deductivist methodological position 366 definition of economics 354, 365 deflation in the Depression 433 Director 359 Economic Planning and International Order 357 economics and ethics 354 economics of public utilities 362 education 348, 349 empirical testing of economic hypotheses 365 Essay on the Nature and Significance of Economic Science 254, 432 Financial Times 364 free trade position 363 government intervention 363 Head of Economics Department 361 history of economic thought 361, 364, 365 history of economics 362 House of Lords 365 influence 366 international political federation 358 international trade theory 729 interpersonal comparisons of utility 365 Introduction to the History of Economic Theory 351 issues of economic theory 360 knowledge-generating properties 383 lectures 352, 353 limitations of laissez faire 363 LSE economist 347, 366 macroeconomic policy 362 macroeconomics 355, 358, 360, 361 main works 367, 368 methodology lectures 354 948     Index monetary overinvestment theory 357 national income and expenditure estimates 359 neutral science of economics 364 New College, Oxford 350 New Statesman & Nation 356 Oxford lectures 354 partial international planning 357 Pigovian welfare analysis 361 points rationing 359 policy debates 361 policy work 347 post-war LSE 361 Principles Lectures 358, 361 problems of policy making 362 Professor of Economics 352 propositions of economic theory 729 relation of economics to politics 364 Robbins Committee 363 Second World War 359 seminar 729 significance of national planning 357 social and economic reform 363 students 367 teaching 347, 350–352, 366 testing hypotheses 365 The Economic Problem in Peace and War 362 The Great Depression 211, 356, 357 the Seminar 352, 358–362 Theories of Economic Policy 362 Tooke Professor 356 Unsettled Problems in Theoretical Economics 352 utility of countercyclical public works 359 Robertson, Dennis 588 Robinson, Peter 17, 23, 156 Rogers, Thorold 59 Rose, Mary 121 Roses, Joan 54 Rowlands, Stanley 91, 92 Roy, Tirthankar 50 Royal Economic Society 165, 250 See also Economic Journal Royal Statistical Society (RSS) 217, 221, 229 S Sample selection 17, 18 Sample surveys 230 Samuelson, Paul 649, 727 Samuelson’s stability conditions 649 Sargan, John Denis 11–13, 16, 23, 667, 794, 795 alternative approaches to approximation 676 asymptotic and small-sample distributions of estimators and tests 668 asymptotic distributions 672 asymptotic expansions 676 asymptotic theory 675 asymptotically chi-squared criteria 676 asymptotically normally distributed criteria 676 asymptotics 675 autocorrelated errors 672, 681, 682 common factor dynamics (Comfac) 684 computing 681 continuous systems 677 continuous time 677 contributions to econometrics 671 data mining 684 Index    949 distribution of the IV estimator of single equation 676 dynamic models 681 econometric methodology 683 econometric modelling of wages and prices 685 Econometrica 671 econometrics 667 Edgeworth expansions 668, 675, 676 Emeritus Professor of Economic Science and Statistics 670 empirical modelling 671 empirical studies 671, 684 EqCMs 684 estimation 680 existence of moments 680 Fulbright Scholarship 669 full asymptotic development 677 full information maximum likelihood (FIML) 673 generalised method of moments (GMM) 672 high-dimensional structural systems 679 identification 673, 674 identification of parameters in models 668 infill asymptotics 677 infinite dimensional systems 679 instrumental variables (IV) 668, 672, 680 IV estimation asymptotics 674 large econometric model estimation 679 life 668 limit distribution theory 672 limited information maximum likelihood (LIML) 676 linear models 674 main works 686, 687 methods of estimation, inference and evaluation 671 misspecification tests 684 model selection 684 modelling methodology 671 Monte Carlo methods 681 near-unidentification 675 nonlinear IV models 675 non-normal asymptotic theory 674 non-normal distribution theory 674 numerical methods 681 observable-variable dynamics 682 papers 671 publications 671 semiparametric estimation 668, 672 semiparametric methods 678 simultaneous equations model 676, 678 small-sample properties 675, 685 system and error dynamics 674 test for instrument validity 684 three-stage least squares (3SLS) 673 time series analysis 683 Tooke Professor of Economic Science and Statistics 670 types of data 671 wage-price model 685 Sargent, Tom 599, 861, 872, 877 Sayers, Richard Sidney 533, 728 academic 538 academic honours 552 adjustment to balance of payments 539 aims and operations of the Bank 547 Bank of England 539 Bank of England Operations 1890– 1914 535, 539 Banking in Western Europe 545 Bank’s relationship with government 546 British Academy 551 British banking 552 950     Index Cambridge 537, 538 capital expenditure 541 Central Banking after Bagehot 535, 543, 545 consultant 548 domestic monetary policy 544 domestic policy 543 early life 536 economic historian 552 Economic History Society 552 Economic Section of the Cabinet Office 542 Economica 547 family 537 Financial Policy 1939–1945 535, 542, 543 functioning of institutions 551 Gilletts in the London Money Market 535 great determination and persistence 550 historian 542 money and banking 535 historian of banking institutions 546 History of Economic Change in England 1880–1939 545 industrial policy 542 knighthood 552 lecturer 548 liquidity 541, 545 liquidity-distribution 541 Lloyds Bank in the History of English Banking 535 main works 554 Modern Banking 535, 538, 540, 542, 543, 545, 546, 553 monetarists 544 monetary historian 539 monetary history 551 monetary policy 545 analysis 553 Monopolies Commission 551 Oxford 539 540 Oxford Economists’ Research Group 541 Oxford Studies in the Price Mechanism 541 personal relationships 548 price and investment policy 542 process of change 551 Radcliffe Committee 534, 543, 544 Radcliffe doctrine 550 Radcliffe Report 541 Sayers’s Money Group 536 seminars 550 short- and long-term rates of interest 541 textbook on banking 540 The Bank of England 1891–1944 535, 552 Treasury 543 wage policy 542 Say’s Law 655 Say’s Law criticism 657 Schneider, Eric 54 Schumpeter Prize 725 Schumpeter, Joseph 116, 389, 738 Business Cycles 482, 738 Schuze, Max-Stephan 48 Scientism 174, 258, 391 Scitovsky paradox 451 Search and match model 885 Search frictions 864 Search models 881 Search theory 874, 876 See also Pissarides, Christopher A Second World War 66, 91, 92, 145, 147, 247 Self-interest 160 Self-regulating economy 725 Seminar in Problems of Administration 92 Semiparametric Bayesian inference 21 Semiparametric estimation 678 Sen, Amartya 799 Index    951 Shackle, George 375 Shadow banking 535 Shaw, George Bernard 218 Shibata, Kei 653 Short-term borrowing 784 Signalling 726 Simultaneous equations system 384, 448 Single equation estimates 675 Single European currency 755 Sloman, Albert 736 Slutsky equation 232, 451 Small static simultaneous equations models 675 Small-sample properties 675 Smith, Adam 37, 53, 198, 204, 349, 363, 378, 623 See also Cannan, Edwin The Wealth of Nations 37, 198, 205 Social biology 250 Social economics 645 Social engineering 387 Social History Society 45 Social policy 145 academics’ awareness of limits 155 academics’ scepticism 152 accustomed living standards protection 156 avoidance of poverty 156 economics of 146 expenditure 151 income smoothing 156 intervention 156 practice 157 revolution in 159 significance of 156 social solidarity 156 staple diet of 148 strategies 157 teaching 156 types of 257 Social Science Research Council (SSRC) 150 Social sciences 39, 56 Social welfare 54 See also Welfare Socialism 174, 269, 380 See also Hayek, Friedrich von economics of 302 See also Dalton, Hugh market 384 models of 382 political economy 388 possible in theory 382 Prussian 174 tools 383 See also Dickinson, H.D Socialist calculation debate 374, 375 See also Hayek, Friedrich von Socialist calculation 402, 434 See also Lerner, Abba Socialist economy 404 Socialist market 387, 388 Sociologically informed positions 101 Sociology 39, 42, 43, 46, 57, 101, 102, 170, 249, 250, 257, 267, 643, 646 Soft market environment 474 Solomons, David 81, 92, 97 Sombart, Werner 79 Soros, George 132 Spare capacity 311, 315, 319 See also Unemployment Spectral regression 678 Spontaneous order 374 See also Hayek, Friedrich von Stabilisation policy 753 Stability and Growth Pact 756 State 152 fiscal unitary 147 functions of 363 intervention 156 must intervene 378 power 153 role of 161, 810 welfare role 152 Stationarity 19 Statist, The 539 952     Index Statistic Durbin-Watson (DW) 14 Statistical estimation Statistical inference 725 Statistical testing Statistics 4, 7, 41, 57, 216–220, 471, 516 See also Bowley, Arthur Lyon and Durbin, James business 83 comparative 8, 449 Cramér-von Mises 637 criteria for acceptability of 227 economic 220, 519, 523 labour 710, 711, 876 national income 222 official 227, 228 reliable 225 theory and practice of 226 Steiner, Peter 729, 732 Stern, Nicholas 149, 160, 821 Stigler, George 556 insularity or autonomy 562 Stiglitz, Joseph 810 Strange, Susan 131 Structural stability 648 Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) 17, 19, 48, 52, 119, 642, 825 Supply and demand interacting relations 725 Supranational institution 254 Sutton, John 132 Syndicalism 363 Systems dynamic T Tanabe, Hajime 643 Tariff reform 58 Tavistock Children’s Clinic 495 Tawney, Richard Henry 44, 63, 65, 66, 71, 115, 158, 263, 499 academic career 264 acquisitive ethos of capitalism 270 activist 263 adult education 264 British ruling class 274 Calvinism 271 capitalism 269, 273 causal links 267 causation 269 Chair in Economic History 265 Christian moral values 283 Christian socialist tradition 280 class advantages 274 class struggle 274 collective action 278 commentator 263 Commonplace Book 272, 282, 283 communist terminus ad quem 269 compartmentalise wisdom 266 critique of capitalism 272 desire for material things 281 difficulty in discussing politics 266 Director of Ratan Tata Trust 265 distribution of income 272 dogmatic rationalism 267 early life 264 economic democracy 278 economic historian 269 economic history 266 economic philosophy 275 economic privilege 278 economic progress 280 education 281 educational reform 264 engagement with Max Webber 270 equal society 280 Equality 267, 274, 278, 280, 283, 284 ethical renewal of society 282 formulate theories 268 full employment 280 Head of Department of History 265 hierarchy of authority 274 historical context 267 Index    953 historical explanations 267 historical methodology 269 historical patterns 267 human motivation 267, 268 individualism 271 intellectual historian 263 interdeterminate outcome of historical forces 270 Labour and the Nation 278 legacy 283 l’histoire integrale 270 main works 285, 286 Marxist study 266 materialism 283 methodological multi-disciplinarity 267 morality 276 mythology of coherence 282 nationalization 278 nature of scholastic institutions 266 new social ethics 276–278 philosophy 276 plutocracy 284 political democracy 280 political economist 263 political economy 271, 283, 284 political thought 282 principle of economic freedom 279 proprietary rights 275 public ownership 278 religion 272 Religion and the Rise of Capitalism 267, 269, 276, 277 revolt against capitalism 273 Sankey Commission 278 scientific methodological individualism 268 Secretary of the Children’s County Holiday Fund 264 social antagonism 272 social ownership 279 social philosophy 275, 277 social reformer 268 social service 279 social system 280 socialism 283 socialist economy 280, 283 Socialist Government 279 Studies in the Development of Capitalism 269 The Acquisitive Society 267, 278 The Agrarian Problem in the Sixteenth Century 267 The Radical Tradition 284 The Study of Economic History 266 theories premised upon egotistical individualism 268 threat to democracy 272, 274 trust 279 utilitarian methodological individualism 267 Workers’ Educational Association (WEA) 264 Tawney’s Century 45 Tax local 146 policy 151 rates 150, 154 reform 293 system 147 Tax/transfer system 626 Taxable capacity 147 Taxation 146 distribution of burden 147 Incentives and Distribution of Income (TIDI) 149–151 incidence of 147 indirect 148 Teichova, Alice 130 Thatcherism 126 hard electricity privatisation 126 Thatcherite 126 Theories of cyclical fluctuations Theories of utility 563 Theory neoclassical 49 Theory of income distribution 465 954     Index Theory of monopoly 406 Theory of optimal control Theory of stable allocation 861 See also Pissarides, Christopher A Theory of the path 651 Theory of Transfer 405 Theory testing 13, 14 Third World Economic History and Development Group 52 Thirlby, George 93 Time series 18, 636 analysis of data 13, 14 econometrics 678 economic 14 historical 672 long 20 memory 17 model 638 paradigm 638 short 13, 19 simple 672 Time, The 126 Titmuss, Richard 257, 258, 265 Tory Party 464 Toryism 58 Total spending 410 Townsend, Harry 117 Trade cycle theory 86 Trade unionism 591 Trade unions 466, 478 action 474 activity 474 role of 594 strains on 319 Transfer of buying power 405 Turnpike theorem 645, 648, 651, 652 Turvey, Ralph 697 academic salary-determination 709 American Economic Association and Royal Economic Society (AEARES) 705 applied welfare economics 713 asset price theory 704 balanced budget multiplier debate 704 business sustainability 709 Channel Tunnel project 706 Chief of the Department of Labour Information 700 classic British intellectual 698 classification of equilibria 701 Consumer Price Index (CPI) 710 consumer price indices 711 cost–benefit analysis 705 cost-price sequencing 702 cost-push inflation 702 current policy 701 Demand and Supply 700 demand-pull/cost-push paradigm 702 Developments in International Labour Statistics 711 discounted cash flow 707 Economic Analysis and Public Enterprises 699, 709 efficacy of regulation 713 Electricity Council 707 Electricity Economics 709, 710 employment 702 exogenous wage push 708 externalities 705 fishery regulation 714 Greek taxation 706 hallmark 703 high-profile macroeconomics 707 hybrid form of regulation 712 ILO 710 manual 711 index number problems 707 inflation 702 inflation tax 704 Interest Rates and Asset Prices 699 investment decision-making 706 involvement with CRI 712 key Swedish texts 698 Index    955 labour statistics 710 later career 710 M2T seminar founder 703 macroeconomic policy 701 macroeconomics 700, 701 main works 715, 716 marginal cost 706, 708 pricing 707 markets 702 monopoly 714 NBPI report 709 optimal pricing 709 Optimal Pricing and Investment in Electricity Supply 699, 708 partial equilibrium 709 period analysis 701 physical modelling in economics 701 planning legislation 704 price cap 712 price mechanism 704 price-setting 708 productivity 708 Public Enterprise: Selected Readings 707 publication record 700 public-sector investment criteria 705 rate of return 712 rational cost-estimation 708 reforming labour statistics 711 rent controls 704 retirement 712 second-best optimisation 709 stabilisation policy 701 Stockholm School 701 The Economics of Real Property 699, 704 theory requirements 703 three lags 702 Treasury 699, 706 types of inflation 702 urban economics 704, 705 Utilities Policy 713 Wages Policy Under Full Employment 703 wage-setting 708 welfare economics 700 welfare housing costs 711 Two-period game 783 See also Goodhart, Charles U UK Association of Business Historians 42 UK student loan 818 Uncertainty 21, 89, 155, 441 See also Hicks, John Unemployment 410, 744, 749, 833, 843, 860, 870 See also Nickell, Stephen J benefits 877 causes 253 evolution of 874 high 318 inflation and 594, 749, 752 See also Phillips curve investment and 318 labour market institutions and 848 See also Nickell, Stephen J long-term 751, 755 rates 753 reduce 304 relief of 302 remedies 355 search 875, 876 technological 438 voluntary and involuntary 884 wage change and 590, 591 wage rigidities and 152 Unit roots 17 Universal pensions 152 University of Cambridge 119 University of Chicago 100 956     Index Unwin, George 36, 49 Upward-sloping marginal cost curve 622 Urban History Group 45 Useful and Reliable Knowledge in the East and the West (URKEW) 52 Utilitarianism 363, 760 See also Layard, Richard Utility 645 UV curve 751 Uzawa, Hirofumi 653 V Valuation 80 Values 79 current 94 deprival 95 present 99 Variables 14–17 Vector autoregression (VARs) 785 Vienna School of Economics 36 Viner, Jacob 361 Volckart, Oliver 54 Von Neumann general equilibrium theory 647 Von Neumann ratio 636 Von Neumann’s theory of capital accumulation 651 W Wada, Kazuo 133 Wage controls 319 cut 252 determination 591 dispersion 864 equation 870 See also Pissarides, Christopher A plasticity of 252 rigid 877 rigidity 152 share 465 Wage-income ratio 473 Wagner, Adolph 154 Walker, Martin 99 Wallas, Graham 265, 431 Wallas, Henry 218 Wallis, Patrick 44, 45 Walras, Leon 644 general equilibrium theory 645 pure economics 645 theory of economic progress 655 Walrasian scheme 405 Watson, Geoffrey 632 Weak convergence theory 637 Wealth by progressive taxation 415 Wealth maldistribution 255 Webb, Beatrice 218, 249, 253, 292 Webb, Sidney 83, 200, 218 Welfare economics 362, 366, 760 first theorem 622 fiscal 258 ideas LSE 258 improvements 451 occupational 258 payments 319 social 258 state 152, 257, 812 economics of 155 programme microsimulation model 152 programme 151, 152 See also Atkinson, Tony Welfare Benefits Handbook 812 Well-being 757, 759, 760 See also Layard, Richard Well-offness 96 White Paper on Employment Policy 360 Whitehead, Christine 159 Whittle likelihood 678 Index    957 Wicksell, Knut 375, 378, 421, 434– 439, 441, 444, 445, 449, 519, 643 Wicksellian analysis 355 Wicksellian model 444 Wicksteed, Philip 353, 375, 378 Wilson, Richard 130 Winter of Discontent 126, 477 Wiseman, Jack 153, 154 Wolf, Abraham 348 Worker mobility 594 Workers’ Educational Association (WEA) 37, 64, 282 See also Tawney, Richard World Bank 157, 360, 822 Wrigley, Tony 55 X XYZ Club 492, 494 Y Yamey, Basil 103, 132 Young, Allyn 198, 432 Z Zuckerman, Solly 495, 496 .. .The Palgrave Companion to LSE Economics Robert A Cord Editor The Palgrave Companion to LSE Economics Editor Robert A Cord Researcher in Economics London, UK ISBN 978-1-137-58273-7... Cowles to get in touch with Allen and persuade him to spend time at the Commission, adding the more I have thought the matter over the more I have come to the conclusion that Allen is the man to. .. the School.12 In addition to the gradual increase in the teaching of econometric theory and mathematical economics at LSE, there was one interesting development that took place with respect to