The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Pigou, Arthur Cecil (1877–1959)

  • Nahid Aslanbeigui
Reference work entry


Arthur Cecil Pigou founded welfare economics by synthesizing Marshall’s theoretical framework and Sidgwick’s categories of market failure and imperfections. His view of welfare economics was expansive, including resource allocation, income redistribution, business cycles, and unemployment. Pigou made important contributions to other areas of economics as well: the theory of value, public finance, index numbers, and evaluation of real national income. The most neglected aspect of Pigou’s work is his investigation of a remarkable range of labour-market phenomena explored by subsequent economists – implicit contracts, internal labour markets, wage rigidity, labour market segmentation, human capital theory, and collective bargaining.


Bandwagon effect Business cycles Cambridge school Coase, R. H. Collective bargaining Cost–benefit analysis Double taxation Externalities Factor prices Fixed factors Happiness Harris–Todaro model Ideal output Increasing returns Inheritance tax Interdependent utility Interpersonal utility comparisons Involuntary unemployment Kahn, R. Keynesian revolution Marshall, A. Mathematical economics Money Money illusion Monopoly Natural monopoly Natural rate of unemployment Pigou, A. C. Pigou effect Positive economics Price discrimination Principal and agent Public goods Public works Real balances Real wages Redistribution of income Relative income Robbins, L. C. Robertson, D. Robinson, A. Robinson, J. V. Sidgwick, H. Snob effect Social cost Sraffa, P. Stationary state Sticky wages Technical change Trade unions Utilitarianism Welfare economics Young, A. A. 

JEL Classifications

B31 A1 B3 D6 J0 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Nahid Aslanbeigui
    • 1
  1. 1.