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By Edward G. Nawy

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Extra resources for Considerations on the Fundamental Principles of Pure Political Economy

Example text

Only from that, and nothing else, did the postulated hypotheses acquire credit and authority. 4 For instance, after demonstrating how one can infer the way of achieving price equilibrium from the principles of Pure Economics, Prof. Walras goes on to say: Quelques critiques se sont pourtant égayés du nombre de pages que j’employais à démontrer qu’on doit arriver au prix courant en faisant la hausse en cas d’éxcédent de la demand sur l’offre, et la baisse en cas d’éxcédent de l’offre sur la demande.

Surely, until this equals zero it will be useful, if possible, to continue the transformations one way if positive and the other way if negative. This is the second formulation, which is shown therefore to be always true. If Q and R are the partial derivatives of the same function P*, that is, if it is possible to assume ∂P ∂P = Q, = R, ∂x ∂y then the equation, for which the infinitesimal variation of utility equals zero, is the condition according to which P is a maximum (or a minimum), and the first formulation is equivalent to the second.

John Kinder (University of Western Australia) translated the ‘Considerazioni’ under the supervision of Roberto Marchionatti (University of Torino) and Fiorenzo Mornati (University of Torino and Centre Walras-Pareto, University of Lausanne), together with the help of Michael McLure (University of Western Australia), in the context of a two-year research programme on economics and mathematics in the history of economics directed by Roberto Marchionatti and financed by the Italian Ministry of Education, University and Research, in 2004–2005.

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