Abstract
The notion of long-run and short-run equilibrium was introduced by Marshall in 1890 and reflected the ‘long-period method’ of analysis in use among classical political economists since the 18th century. In the early 1930s, dissatisfaction with some of the neoclassical conclusions led to a shift to different methods of analysis and to the introduction of new equilibrium notions. These changes, together with the tendency to use old terminology for new equilibrium concepts, have deprived the terms ‘short-period’ and ‘long-period’ of a uniform meaning and have been a source of confusion and misunderstandings in recent debates on theoretical and applied work.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsBibliography
Debreu, G. 1959. Theory of value. New York: Wiley.
Garegnani, P. 1970. Heterogeneous capital, the production function and the theory of distribution. Review of Economic Studies 37: 407–436.
Garegnani, P. 1976. On a change in the notion of equilibrium in recent work on value and distribution. In Essays in modern capital theory, ed. M. Brown, K. Sato, and P. Zarembka. Amsterdam: North-Holland.
Garegnani, P. 1990. Quantity of capital. In Capital theory, ed. J. Eatwell, M. Milgate, and P. Newman. London: Macmillan.
Grandmont, J.M. 1977. Temporary general equilibrium theory. Econometrica 45: 535–572.
Harcourt, G.C. 1969. Some Cambridge controversies in the theory of capital. Journal of Economic Literature 7: 369–405.
Hicks, J.R. 1939. Value and capital. Oxford: Clarendon Press.
Keynes, J.M. 1936. The general theory of employment, interest and money. In The collected writings of J.M. Keynes, ed. D. Moggridge, vol. VII. London: Macmillan.
Keynes, J.M. 1973. The general theory and after. Part I: Preparation. In The collected writings of J.M. Keynes, ed. D. Moggridge, vol. XIII. London: Macmillan.
Keynes, J.M. 1979. The general theory and after: A supplement. In The collected writings of J.M. Keynes, ed. D. Moggridge, vol. XXIX. London: Macmillan.
Marshall, A. 1890. Principles of economics. 8th ed. London: Macmillan, 1920.
Marx, K. 1972. Capital. Vol. 3. London: Lawrence &Wishart.
Milgate, M. 1979. On the origin of the notion of ‘intertemporal equilibrium’. Economica 46: 1–10.
Patinkin, D. 1976. Keynes’ monetary thought. Durham: Duke University Press.
Petri, F. 2004. General equilibrium, capital and macroeconomics. A key to recent controversies in equilibrium theory. Cheltenham: Edward Elgar.
Pigou, A.C. 1927. The laws of diminishing and increasing cost. Economic Journal 37: 188–197.
Quesnay, F. 1758. Tableau économique. Reproduced and trans. as Quesnay’s Tableau économique, ed. M. Kuczynski and R.L. Meek. London: Macmillan, 1972.
Robbins, L. 1930. On a certain ambiguity in the conception of stationary equilibrium. Economic Journal 40: 194–214.
Smith, A. 1776. An inquiry into the nature and causes of the wealth of nations. Ed. E. Cannan. London: Methuen, 1904.
Sraffa, P. 1925. Sulle relazioni fra costo e quantità prodotta. Annali di Economia 2: 277–328.
Sraffa, P. 1926. The laws of returns under competitive conditions. Economic Journal 36: 535–550.
Whitaker, J.K., ed. 1975. The early economic writings of Alfred Marshall, 1867–1890. London: Macmillan.
Winch, D. 1969. Economics and policy: A historical study. London: Hodder & Stoughton.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Panico, C., Petri, F. (2018). Long Run and Short Run. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1074
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_1074
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences