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Famous Figures and Diagrams in Economics


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Table of Contents

Contents: Introduction Mark Blaug and Peter Lloyd PART I: SINGLE MARKET ANALYSIS (PARTIAL EQUILIBRIUM) Basic Tools of Demand and Supply Curve Analysis 1. Marshallian Cross Diagrams Thomas M. Humphrey 2. The Stability of Equilibrium Mark Blaug 3. Indifference Curves and Isoquants Mark Blaug and Peter Lloyd 4. The Elasticity of Substitution Robert Dixon 5. Substitution and Income Effects Hans Haller 6. Engel Curves Ross Williams 7. Homothetic Production and Utility Functions Rolf Fare and Shawna Grosskopf 8. Long-run and Short-run Cost Curves Fiona Maclachlan 9. The Product Exhaustion Theorem Cassey Lee 10. Classification of Technical Change Robert Dixon 11. Nash Equilibrium Jurgen Eichberger Welfare Economics 12. Consumer Surplus Yew-Kwang Ng 13. The Harberger Triangle Yew-Kwang Ng 14. Community Indifference Curves and the Scitovsky `Paradox' Richard G. Lipsey 15. The Taxation of External Costs Yew-Kwang Ng 16. Monopoly and Price Discrimination William J. Baumol 17. Duopoly Reaction Curves Nicola Giocoli 18. Monopolistic Competition Andrew Skinner 19. Kinked Demand Curves R. Rothschild Special Markets and Topics 20. Backward-bending Labour Supply Curves John E. King 21. Location Theory: The Contributions of von Thunen and Loesch B. Curtis Eaton and Richard G. Lipsey 22. Hotelling's Model of Spatial Competition Nisvan Erkal 23. Cobweb Diagrams Marc Nerlove 24. Reswitching and Reversing in Capital Theory Avi J. Cohen and Geoffrey C. Harcourt 25. The Markowitz Mean-variance Diagram Fiona Maclachlan 26. Rent-seeking Diagrams Anne O. Krueger 27. The Logistic Growth Curve J.S. Cramer 28. Graph Theory and Networks Cassey Lee PART II: GENERAL EQUILIBRIUM ANALYSIS Basic Tools of General Equilibrium Analysis 29. Circular Flow Diagrams Roger E. Backhouse and Yann Giraud 30. The Unit Simplex John Whalley 31. The Edgeworth Box John Creedy 32. The Role of Numbers in Competition John Creedy 33. Production Possibility Frontiers Ronald W. Jones 34. The Utility-Possibility Frontier John S. Chipman 35. The Factor Price Frontier Alan D. Woodland 36. Pareto Efficiency Peter Lloyd 37. The Phase Diagram Technique for Analyzing the Stability of Multiple-market Equilibrium D. Wade Hands 38. The Theory of Second Best and Third Best Wai Chiu Woo Open Economies 39. The Offer Curve Murray Kemp 40. The Stolper-Samuelson Box Henry Thompson 41. The Lerner Diagram Alan V. Deardorff 42. The Trade Theory Diagram Peter Lloyd 43. The Four-quadrant Diagram for the Two-sector Heckscher-Ohlin Model Arvind Panagariya 44. The Integrated World Equilibrium Diagram Avinash Dixit 45. The Optimal Tariff Murray Kemp PART III: MACROECONOMICS Macroeconomic Analysis and Stabilisation 46. Keynesian Income Determination Diagrams Michael Schneider 47. The IS-LM Diagram Warren Young 48. The Fleming-Mundell Diagram Russell Boyer and Warren Young 49. The Aggregate Demand Aggregate Supply Diagram Richard G. Lipsey 50. The Phillips Curve Richard G. Lipsey 51. The UV or Beveridge Curve Peter Rodenburg 52. The Demand Curve for Money David Laidler 53. Non-neutrality of Money He-ling Shi 54. The Laffer Curve Roger Middleton Growth, Income Distribution and Other Topics 55. Intertemporal Utility Maximization - the Fisher Diagram Thomas M. Humphrey 56. The Diagrams of the Solow-Swan Growth Model Barbara J. Spencer and Robert W. Dimand 57. The Lorenz Curve Nanak Kakwani 58. Kuznets Curves Lisa Cameron, Lata Gangadharan and Sowmiya Ashok Index

About the Author

Edited by the late Mark Blaug, former Professor Emeritus, University of London and Professor Emeritus, University of Buckingham, UK and Peter Lloyd, Professor Emeritus, Department of Economics, University of Melbourne, Australia


`. . . the book is a marvellous achievement and a major contribution to the history of economic thought. . . The book provides a genuinely interesting perspective on the development of modern economics. Each diagram illustrates a single analytical point, but there is a cumulative logic to the exposition of the various diagrams that reproduce the main turns in the development of modern economic theory. So reading the book cover-to-cover is an excellent way of working through the logic of the discipline. . . Famous Figures and Diagrams in Economics is a major contribution to the history of economic thought and repays close study by anyone who wants to have a better understanding of how economists reason.' -- Daniel Little, Journal of Economic Methodology
`. . . there is much of interest in this volume. . . The study under review makes for enjoyable reading for those who either have drawn economic diagrams on the blackboard as part of their teaching, or, for that matter, for those who as students recall painful inability to understand the point of the diagram, so carefully constructed on the blackboard by one of their teachers.' -- Peter Groenewegen, History of Economics Review
`A picture is said to be worth a thousand words. A picture can easily be worth two or three equations, and it is certainly more memorable. I can draw and use an Edgeworth box more quickly than I can write down its formulas. There is a vast amount of economics packed into the 58 diagrams and expert commentaries in this unique book. Take it with you to your favourite desert island. All you need is a sandy beach and a pointed stick.' -- Robert Solow, Massachusetts Institute of Technology, US
`This book is a goldmine of information and interpretation for historians of economics, and thoughtful economists of all kinds. The origin and evolution of important figures and diagrams in economics will now be instantly at their fingertips. The authors of the entries are a galaxy of distinguished economists and historians whose accounts can be trusted. One must ask why no one has put together such a collection before.' -- Craufurd Goodwin, Duke University, US
`Economics relies on verbal reasoning, geometry and formal mathematics. Advances and insights in the subject come in all these ways. This splendid book shows the power of geometric analysis, which I have favoured in my own work, drawing on several famous diagrams that have made their way into the literature. It is a book to be savoured and learnt from.' -- Jagdish Bhagwati, Columbia University, US
`Here is a feast of diagrams, presented by many expert authors in a context of history of thought. It will be very useful for researchers, students and textbook writers.' -- Max Corden, University of Melbourne, Australia
`Francis Collins oversaw the human genome project. Mark Blaug and Peter Lloyd have done the same for economics, demonstrating that figures and diagrams are the DNA building blocks of the discipline. This book has them all: backward-bending labor supply, cobweb diagram, circular flow, production possibility frontier, Stolper-Samuelson box, IS/LM, the Phillips curve and many more. Each is portrayed, its importance explained, its origin revealed, and the reader often encounters Stigler's Law of Eponymy (No scientific discovery is named after its original discoverer).' -- Kenneth G. Elzinga, University of Virginia, US
`Both students and professors will welcome this original and unique collection. Analytically tighter and more complete expositions than much existing literature should be very welcome in graduate theory courses. Authors of history of economic thought texts will have to clarify and correct the historical record regarding who said what and when, and both reconfigure the assignment of credit and question use of the term "precursor": early users did more than hint at the full development; often creating tools.' -- Warren Samuels, Michigan State University, US

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