Roy Harrod pp 77-123 | Cite as

The Early Writings on the Trade Cycle and Imperfect Competition

  • Esteban Pérez CaldenteyEmail author
Part of the Great Thinkers in Economics book series (GTE)


Harrod’s early essays introduced key ideas for the development of his dynamics including the notion of steady advance as a point of reference for the trade cycle and dynamics, the identification of distribution as one of the main dynamic determinants of the trade cycle, and the destabilizing role of monetary factors. Harrod also devoted his efforts to the construction of imperfect competition introducing the marginal revenue product curve to show the coexistence of equilibrium with increasing returns and the long-run average cost curve to demonstrate that competitive equilibrium is consistent with decreasing costs. At this stage of his thinking, Harrod viewed imperfect competition as the foundation for dynamic analysis. Imperfect competition introduced an element of instability which he further explored and worked out in The Trade Cycle (1936). Moreover, under conditions of imperfect competition and unstable equilibria, the cycle, could in fact, be endogeneized.


  1. Astor, J. J., Bowley, S., et al. (1922). The Third Winter of Unemployment. London: P.S. King and Son.Google Scholar
  2. Benjamin, D. K., & Kochin, L. A. (1979, June). Journal of Political Economy, 87(3), 441–478.Google Scholar
  3. Besomi, D. (1997). Statics and Dynamics in Harrod’s Trade Cycle. Review of Political Economy, 9(2), 181–209.CrossRefGoogle Scholar
  4. Besomi. D. (2003). The Collected Interwar Papers and Correspondence of Roy Harrod (Vols. I, II, and III). Northampton: Edward Elgar.Google Scholar
  5. Beveridge, W. H. (1909). Unemployment: A Problem of Industry. London: Longmans, Green and Co.Google Scholar
  6. Bigg. R. J. (1990). Cambridge and the Monetary Theory of Production. New York: St. Martin’s Press.Google Scholar
  7. Bopp, K., Rosa, R. V., Parry, C. E., Thomas, W., & Young, R. A. (1947). Federal Reserve Bank Policy. Washington, DC: Board of Governors of the Federal Reserve System.Google Scholar
  8. Bowley, A. L. (1921). Prices and Wages in the United Kingdom, 1914–1920. Oxford: Clarendon Press.Google Scholar
  9. Bridel, P. (1987). Cambridge Monetary Thought. New York: Palgrave Macmillan.CrossRefGoogle Scholar
  10. Cannan, E. (1922, June). Supply and Demand by Hubert D. Henderson. The Economic Journal, 32(126), 198–202.CrossRefGoogle Scholar
  11. Clapham, J. H. (1922, September). Of Empty Economic Boxes. The Economic Journal, 32, 305–314.CrossRefGoogle Scholar
  12. Darnell, A. (1981). A.L. Bowley, 1869–1957. In D. P. O’Brien & J. R. Priesley (Eds.), Modern Economics in Britain (pp. 140–174). New York: St. Martin’s Press. Google Scholar
  13. Eshag, E. (1963). From Marshall to Keynes. Oxford: Basil Blackwell.Google Scholar
  14. Federal Reserve Board. (1924). Tenth Annual Report. Washington, DC: Government Printing Office.Google Scholar
  15. Federal Reserve Board. (1928). Thirteenth Annual Report. Washington, DC: Government Printing Office.Google Scholar
  16. Ferguson, C. D. (1996). Microeconomic Theory. Homewood: Richard D. Irwin.Google Scholar
  17. Fisher, I. (1914, December). Objections to a Compensated Dollar Answered. American Economic Review, 4, 818–839.Google Scholar
  18. Fisher, I. (1920). Stabilizing the Dollar. New York: Macmillan.Google Scholar
  19. Fisher, I. (1933). Stamp Strip. New York: Adelphi Co.Google Scholar
  20. Fisher, I. (1934). Stable Money. New York: Adelphi.Google Scholar
  21. Fisher, I. (1985 [1913]). The Purchasing Power of Money. New York: Kelley Publishers.Google Scholar
  22. Flux, A. W. (1927). Indices of Industrial Productive Activity. Journal of the Royal Statistical Society, 90(2), 225–271.CrossRefGoogle Scholar
  23. Foxwell, H. S. (1886). Irregularity of Employment and Fluctuations of Prices. Edinburgh: Co-operative Printing Company Limited.Google Scholar
  24. Harrod, R. F. (1925a). The Trade Cycle and the Theory of Distribution. In D. Besomi (Ed.), The Collected Interwar Papers and Correspondence of Roy Harrod (CIPC) (Vol. III, pp. 1021–1032). Cheltenham: Edward Elgar.Google Scholar
  25. Harrod, R. F. (1925b). Review of Free Trade and Peace in the Nineteenth Century by Helen Bosanquet. The Economic Journal, 35(138), 294–296.CrossRefGoogle Scholar
  26. Harrod, R. F. (1926–1928a). The Trade Cycle. In D. Besomi (Ed.), The Collected Interwar papers and Correspondence of Roy Harrod (CIPC) (Vol. III, pp. 1055–1062). Cheltenham: Edward Elgar. Google Scholar
  27. Harrod, R. F. (1926–1928b). The Effect of Falling Prices on Employment. In D. Besomi (Ed.), The Collected Interwar Papers and Correspondence of Roy Harrod (CIPC) (Vol. III, pp. 1046–1054). Cheltenham: Edward Elgar.Google Scholar
  28. Harrod, R. F. (1928). Notes on Monopoly and Quasi Competition. In CIPC, Vol. III, pp. 1063–1068.Google Scholar
  29. Harrod, R. F. (1930, June). Notes on Supply. Economic Journal, 40. Reprinted in Harrod, R. F. (1952), 77–88.Google Scholar
  30. Harrod, R. F. (1931, December). The Law of Decreasing Costs. Economic Journal, 41. Reprinted in Harrod, R. F. (1952), 89–102.Google Scholar
  31. Harrod, R. F. (1932, September). Decreasing Costs: An Addendum. Economic Journal, 42. Reprinted in Harrod, R. F. (1952).CrossRefGoogle Scholar
  32. Harrod, R. F. (1933, June). A Further Note on Decreasing Costs. Economic Journal. Reprinted in Harrod, R. F. (1952), 103–107.Google Scholar
  33. Harrod, R. F. (1936). The Trade Cycle. Oxford: Clarendon Press.Google Scholar
  34. Harrod, R. F. (1951). Life of John Maynard Keynes. New York: Harcourt, Brace.Google Scholar
  35. Harrod, R. F. (1952). Economic Essays. London: Macmillan.Google Scholar
  36. Harrod, R. F. (1952 [1934a], May). Doctrines of Imperfect Competition. Quarterly Journal of Economics, 48. Reprinted in Harrod, R. F., 111–138.Google Scholar
  37. Harrod, R. F. (1952 [1934b], June). The Equilibrium of Duopoly. Economic Journal, 44. Reprinted in Harrod, R. F., 108–110.Google Scholar
  38. Harrod, R. F. (1952 [1934c]). Theory of Imperfect Competition Revised. In Economic Essays (pp. 139–187). London: Macmillan & Co. Ltd.Google Scholar
  39. Harrod, R. F. (1953). The Pre-war Faculty. Oxford Economic Papers, New Series, Vol. 5. Supplement. Sir Hubert Henderson. 1890–1952, pp. 59–64.Google Scholar
  40. Harrod, R. F. (1959, August). Review of the Long and the Short View by J. Viner. Economica, XXVI, 260–262.CrossRefGoogle Scholar
  41. Harrod, R. F. (1963). The Dollar. New York: W.W. Norton & Company Inc.Google Scholar
  42. Harrod, R. F. (1967). Increasing Returns. In Robert E. Kuenne (Ed.), Monopolistic Competition Theory: Studies in Impact: Essays in Honor of Edward H. Chamberlin (pp. 63–76). New York: Wiley.Google Scholar
  43. Harrod, R. F. (1969). Money. New York: St. Martin’s Press.Google Scholar
  44. Harrod, R. F. (1972, March). Imperfect Competition, Aggregate Demand and Inflation. The Economic Journal, 82(325), 392–401. CrossRefGoogle Scholar
  45. Harrod, R. F. (1973). Economic Dynamics. New York: St. Martin’s Press.Google Scholar
  46. Hawtrey, R. (1913 [1962]). Good and Bad Trade. New York: Kelley Publishers.Google Scholar
  47. Henderson, H. (1922). Money. Cambridge: Cambridge University Press.Google Scholar
  48. Hicks, J. R. (1939). Value and Capital. New York: Oxford University Press.Google Scholar
  49. Hobson, J. A. (1895, March). The Meaning and Measure of Unemployment. Contemporary Review, LXVII.Google Scholar
  50. Hutchinson, T. W. (1975 [1953]). A Review of Economic Doctrines. Westport, CT: Greenwood Press Publishers.Google Scholar
  51. ILO. (1922, December). International Labour Review, Vol. VI, No. 6. Geneva: International Labour Office.Google Scholar
  52. ILO. (1924). Unemployment, 1920–1923. Studies and Reports. Series C. No. 8. Geneva: International Labour Office.Google Scholar
  53. ILO. (1926). The International Labour Organization and Unemployment. Geneva: International Labour Office.Google Scholar
  54. Jevons, W. S. (1965 [1871]). The Theory of Political Economy. New York: Kelley Publishers.Google Scholar
  55. Jevons, W. S. (1896). Money and the Mechanism of Exchange. New York: D. Appleton.Google Scholar
  56. Kahn, R. (1984). The Making of Keynes’ General Theory. Cambridge: Cambridge University Press.Google Scholar
  57. Kaldor, N. (1935). Market Imperfection and Excess Capacity. Economica, 2, 33–50. Reprinted in Kaldor. (1960). Essays on Value and Distribution (pp. 62–95). London: Duckworth.Google Scholar
  58. Keynes, J. M. (1923). Alternative Aims in Monetary Policy. In The Collected Writings of John Maynard Keynes (1972, Vol. IX). New York: St. Martin’s Press.Google Scholar
  59. Keynes, J. M. (1930, March). Introduction by the Editor. Increasing Returns and the Representative Firm. A Symposium. D. H. Robertson, P. Sraffa, & G. F. Shove. The Economic Journal, 40(157), 79.Google Scholar
  60. Keynes, J. M. (1971 [1923]). A Tract on Monetary Reform. New York: Macmillan Press and Royal Economic Society.Google Scholar
  61. Laidler, D. (1991). The Golden Age of the Quantity Theory of Money. Princeton, NJ: Princeton University Press.Google Scholar
  62. Laidler, D. (1999). Fabricating the Keynesian Revolution. New York: Cambridge University Press.Google Scholar
  63. Lavington, F. (1922). The Trade Cycle. Westmister: P.S. King & Staples.Google Scholar
  64. Lavington, F. (1968 [1921]). The English Capital Market. New York: Kelley Publishers.Google Scholar
  65. Lowe, J. (1823). The Present State of England in Regard to Agriculture, Trade and Finance. London: Longman, Hurst, Rees, Orme, and Brown.Google Scholar
  66. Maas, H. (2008). Jevons, William Stanley (1835–1882). In S. N. Durlauf & L. E. Blume (Eds.), The New Palgrave Dictionary of Economics. London: Palgrave Macmillan.Google Scholar
  67. Maclachlan, F. (2010). Long-Run and Short-Run Cost Curves. In M. Blaug & P. Lloyud (Eds.), Famous Figures and Diagrams in Economics (pp. 73–79). Northampton: Edward Elgar.Google Scholar
  68. Marcuzzo, M. C. (1994). R. F. Kahn and Imperfect Competition. Cambridge Journal of Economics, 18, 25–39.CrossRefGoogle Scholar
  69. Marcuzzo, M. C. (2003). The “First” Imperfect Competition Revolution. In W. Samuels, J. E. Biddle, & J. B. Davis (Eds.), A Companion to the History of Economic Thought (pp. 294–307). Malden: Blackwell.Google Scholar
  70. Marshall, A. (1887, March). Remedies for Fluctuations on General Prices. Contemporary Review. Reprinted in Memorials of Alfred Marshall (A. C. Pigou, Ed., pp. 188–211) (1925). London: Macmillan.Google Scholar
  71. Marshall, A. (1982 [1890]). Principles of Economics. Philadelphia: Porcupine Press.Google Scholar
  72. Marshall, A. (1991 [1923]). Money, Credit and Commerce. New York: Kelley Publishers. Google Scholar
  73. Mitchell, B. R. (1993). International Historical Statistics: Europe 1750–1993. New York: Macmillan.Google Scholar
  74. Moggridge, D. E. (1972). British Monetary Policy, 1924–1931. Cambridge: Cambridge University Press.Google Scholar
  75. O’Brien, D. P., & Presley, J. R. (1981). Pioneers of Modern Economics in Britain. New York: St. Martin’s Press.Google Scholar
  76. Pigou, A. C. (1908). Economic Science in Relation to Practice. London: Macmillan and Co. Limited.Google Scholar
  77. Pigou, A. C. (1912). Wealth and Welfare. London: Macmillan.Google Scholar
  78. Pigou, A. C. (1922). Empty Economic Boxes: A Reply. The Economic Journal, 32, 458–465.CrossRefGoogle Scholar
  79. Pigou, A. C. (1924). Untitled Reply to D.H. Robertson’s ‘Those Economic Boxes’. The Economic Journal, 34, 30–31.CrossRefGoogle Scholar
  80. Pigou, A. C. (Ed.). (1925). Memorials of Alfred Marshall. London: Macmillan and Company Limited.Google Scholar
  81. Pigou, A. C. (1929). Industrial Fluctuations. London: Macmillan.Google Scholar
  82. Porter, G. R. (1838). Progress of the Nation. London: Charles Knight.Google Scholar
  83. Poulett Scrope, G. (1833). An Examination of the Bank Charter Question. London: Abemarle.Google Scholar
  84. Robertson, D. H. (1915). A Study of Industrial Fluctuation. London: P. S. King & Son, Ltd.Google Scholar
  85. Robertson, D. H. (1927). The Colwyn Committee, The Income Tax, and the Price Level. The Economic Journal, 27(148), 566–581.CrossRefGoogle Scholar
  86. Robertson, D. H. (1955 [1923]). The Control of Industry. London: Nisbet and Co. Ltd.Google Scholar
  87. Robertson, D. H., Sraffa, P., & Shove, G. F. (1930, March). Increasing Returns and the Representative Firm. The Economic Journal, 40(157), 79–116. Google Scholar
  88. Robertson, R. (1922). Money. London: Nisbet.Google Scholar
  89. Robinson, J. (1932). Imperfect Competition and Falling Supply Price. The Economic Journal, 42(168), 544–554.CrossRefGoogle Scholar
  90. Robinson, J. (1933, September). Decreasing Costs: A Reply to Mr. Harrod. The Economic Journal, 43(171), 531–532. CrossRefGoogle Scholar
  91. Robinson, J. (1934, November 1). What Is Perfect Competition? Quarterly Journal of Economics, 49(1), 104–120.CrossRefGoogle Scholar
  92. Robinson, J. (1950 [1933]). The Economics of Imperfect Competition. London: Macmillan and Co.Google Scholar
  93. Roncaglia, A. (1978). Sraffa and the Theory of Prices. New York: Wiley.Google Scholar
  94. Roncaglia, A. (1991). Sraffa’s 1925 Article and Marshall’s Theory. Quaderni di storia dell’economia politica, Vol. 9, N 2/3, Vol. I: Alfred Marshall’s “Principles of Economics” 1890–1990 (1991), pp. 373–397. Google Scholar
  95. Roncaglia, A. (2006). The Wealth of Ideas: A History of Economic Thought. Cambridge: Cambridge University Press.Google Scholar
  96. Roncaglia, A. (2009). Piero Sraffa. New York: Palgrave Macmillan.CrossRefGoogle Scholar
  97. Samuelson, P. (1947). Foundations of Economic Analysis. New York: Oxford University Press.Google Scholar
  98. Samuelson, P. (1972). Jacob Viner 1892–1970. Journal of Political Economy, 80(1), 5–11.CrossRefGoogle Scholar
  99. Samuelson, P. (1994). Richard Kahn: His Welfare Economics and Lifetime Achievement. Cambridge Journal of Economics, 25(2), 55–72.Google Scholar
  100. Sardoni, C. (1999). The Debate on Excess Capacity in the 1930s. Keynes, Post-Keynesianism and Political Economy (pp. 261–285). London: Routledge.Google Scholar
  101. Schumpeter, J. A. (1954). History of Economic Analysis. New York: Oxford University Press.Google Scholar
  102. Shackle, G. L. S. (1967). Years of High Theory: Invention and Tradition in Economic Thought 1926–1939. Cambridge: Cambridge University Press.Google Scholar
  103. Shackle, G. L. S. (1988). Business, Time and Thought. Selected Papers of G. L. S Shackle (S. F. Frowen, Ed.). London: Macmillan Press.Google Scholar
  104. Shove, G. F. (1933, March). The Imperfection of the Market: A Further Note. Economic Journal, 43(169), 113–124. CrossRefGoogle Scholar
  105. Sprague, O. M. W. (1914, November). Fisher’s Purchasing Power of Money. The Quarterly Journal of Economics, 26(1), 140–151.Google Scholar
  106. Sraffa, P. (1925). Sulle relazioni fra costo e quatitita prodotta [On the Relation Between Cost and Quantity Produced]. Annali di economia, 2, 277–328.Google Scholar
  107. Sraffa, P. (1926, December). The Laws of Return Under Competitive Conditions. The Economic Journal, 36(114), 535–550.CrossRefGoogle Scholar
  108. Sraffa, P. (1930, March). A Criticism (and Reply to Robertson) in Increasing Returns and the Representative Firm. D. H. Robertson, P. Sraffa, & G. F. Shove. The Economic Journal, 40(157), 79–116.Google Scholar
  109. Tinberlake, R. (1993). A History of Monetary Policy in the United States. Chicago: University of Chicago Press.Google Scholar
  110. Viner, J. (1932). Cost Curves and Supply Curves. In Zeitschrift Für Nationalökonomie (pp. 1–46). Heidelberg, Berlin: Springer-Verlag GmbH.CrossRefGoogle Scholar
  111. Viner, J. (1958 [1950]). Supplementary Note to ‘Cost Curves and Supply Curves’. In J. Viner (Ed.), The Long View and the Short (pp. 79–84). London: George Allen & Unwin.Google Scholar
  112. Young, W. (1989). Harrod and His Trade Cycle Group. New York: New York University Press.CrossRefGoogle Scholar
  113. Young, W., & Lee, F. (1993). Oxford Economics and Oxford Economists. London: The MacMillan Press Ltd.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.SantiagoChile

Personalised recommendations