MARGINAL ANALYSIS EXTENDED AND
METHODOLOGICAL CONTROVERSY 235
Marginal Analvsis Extended: The Second Generation 258
Marginal Productivity Theory 240
Litroduction Principle of diminishing returns The new and the
old Product exhaustion Wicksell on product exhaustion
The ethical implications of marginal productivity theory
Marginal productivity as a theory of employment Marginal
productivity theory criticized
Profits and Interest 258
Profit theory Capital and interest theory The problem of
interest Bohm-Bawerk's theory of interest Fisher on interest
The problem of interest: A summary The rate of interest. level of
prices, and income
Methodological Controversy 273
Introduction The older historical school
school The historical method in England
Summary 277
Sugeested Readings
la
3 ALFRED MARSHALL 279
The Father of Neoclassicism 281
Scope of economics Marshall on method Understanding the
complex—the method in action The problem with time The
Marshallian cross Marshall on demand Consumers’ surplus
Faxes and welfare Marshall on supply Marshall on distribution
Quasi-rent Stable and unstable equilibrium Economic
Auctuations, money, and prices
Summary and Critical Fvaluation of Marshall 313
Succested Readings 316
9 HETERODOX THEORY SINCE MARSHALL 317
Thorstein Veblen 320
Veblen's criticism of orthodox theory Veblen's analysis of capitalism
I'he dichotomy The leisure class and the higher learning The
stability and long-run tendencies of capitalism Veblen’s contribution