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`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 This is a unique account of the role played by 58 figures and diagrams commonly used in economic theory. These cover a large part of mainstream economic analysis, both microeconomics and macroeconomics and also general equilibrium theory. The authoritative contributors have produced a well-considered and definitive selection including some from empirical research such as the Phillips curve, the Kuznets curve and the Lorenz curve. Almost all of them are still found in contemporary textbooks and research. Each entry presents an accurate and concise record of the history of the figure or diagram, including later developments and any controversy that arose in its development. As a whole, the book highlights how the use of geometric methods has played a central part in the development of economic theory and analysis; as a method of discovery, more commonly as a method of exposition and occasionally as a method of proof of propositions in economic theory and analysis. This highly anticipated book will appeal to theorists in microeconomics or macroeconomics, scholars of economic theory and analysis, as well as students in microeconomics, general equilibrium theory or macroeconomics at the advanced undergraduate or graduate level who want a definitive account of some figure or diagram. Historians of economic thought and methodologists will also find this book an invaluable resource. Contributors:S. Ashok, R.E. Backhouse, W.J. Baumol, M. Blaug, R. Boyer, L. Cameron, J.S. Chipman, A.J. Cohen, J.S. Cramer, J. Creedy, A.V. Deardorff, R.W. Dimand, A. Dixit, R. Dixon, B.C. Eaton, J. Eichberger, N. Erkal, R. F?¤re, L. Gangadharan, N. Giocoli, Y. Giraud, S. Grosskopf, H. Haller, D.W. Hands, G.C. Harcourt, T.M. Humphrey, R.W. Jones, N. Kakwani, M. Kemp, J.E. King, A.O. Krueger, D. Laidler, C. Lee, R.G. Lipsey, P. Lloyd, F. Maclachlan, R. Middleton, M. Nerlove, Y.-K. Ng, A. Panagariya, P. Rodenburg, R. Rothschild, M. Schneider, H.-l. Shi, A. Skinner, B.J. Spencer, H. Thompson, J. Whalley, R. Williams, W.C. Woo, A.D. Woodland, W. Young

Table Of Contents:

List of figures ix

List of contributors xiv
Acknowledgements xvii
Introduction 1(28)

Mark Blaug

Peter Lloyd

Part I Single Market Analysis (Partial Equilibrium)

Basic tools of demand and supply curve analysis

1 Marshallian cross diagrams 29(9)

Thomas M. Humphrey

2 The stability of equilibrium 38(5)

Mark Blaug

3 Indifference curves and isoquants 43(7)

Mark Blaug

Peter Lloyd

4 The elasticity of substitution 50(8)

Robert Dixon

5 Substitution and income effects 58(6)

Hans Haller

6 Engel curves 64(5)

Ross Williams

7 Homothetic production and utility functions 69(4)

Rolf Fare

Shawna Grosskopf

8 Long-run and short-run cost curves 73(7)

Fiona MacLachlan

9 The product exhaustion theorem 80(3)

Cassey Lee

10 Classification of technical change 83(6)

Robert Dixon

11 Nash equilibrium 89(8)

Jurgen Eichberger

Welfare economics

12 Consumer surplus 97(7)

Yew-Kwang Ng

13 The Harberger triangle 104(6)

Yew-Kwang Ng

14 Community indifference curves and the Scitovsky `paradox' 110(11)

Richard G. Lipsey

15 The taxation of external costs 121(7)

Yew-Kwang Ng

16 Monopoly and price discrimination 128(9)

William J. Baumol

17 Duopoly reaction curves 137(8)

Nicola Giocoli

18 Monopolistic competition 145(9)

Andrew Skinner

19 Kinked demand curves 154(7)

R. Rothschild

Special markets and topics

20 Backward-bending labour supply curves 161(9)

John E. King

21 Location theory: the contributions of von Thunen and Losch 170(9)

B. Curtis Eaton

Richard G. Lipsey

22 Hotelling's model of spatial competition 179(5)

Nisvan Erkal

23 Cobweb diagrams 184(7)

Marc Nerlove

24 Reswitching and reversing in capital theory 191(8)

Avi J. Cohen

Geoffrey C. Harcourt

25 The Markowitz mean-variance diagram 199(5)

Fiona MacLachlan

26 Rent-seeking diagrams 204(5)

Anne O. Krueger

27 The logistic growth curve 209(3)

J.S. Cramer

28 Graph theory and networks 212(9)

Cassey Lee

Part II General Equilibrium Analysis

Basic tools of general equilibrium analysis

29 Circular flow diagrams 221(9)

Roger E. Backhouse

Yann Giraud

30 The unit simplex 230(3)

John Whalley

31 The Edgeworth box 233(6)

John Creedy

32 The role of numbers in competition 239(6)

John Creedy

33 Production possibilities frontiers 245(7)

Ronald W. Jones

34 The utility-possibility frontier 252(10)

John S. Chipman

35 The factor price frontier 262(10)

Alan D. Woodland

36 Pareto efficiency 272(8)

Peter Lloyd

37 The phase diagram technique for analyzing the stability of multiple-market equilibrium 280(6)

D. Wade Hands

38 The theory of second best and third best 286(9)

Wai Chiu Woo

Open economies

39 The offer curve 295(5)

Murray Kemp

40 The Stolper-Samuelson box 300(5)

Henry Thompson

41 The Lerner diagram 305(6)

Alan V. Deardorff

42 The trade theory diagram 311(6)

Peter Lloyd

43 The four-quadrant diagram for the two-sector Heckscher-Ohlin model 317(6)

Arvind Panagariya

44 The integrated world equilibrium diagram 323(5)

Avinash Dixit

45 The optimal tariff 328(9)

Murray Kemp

Part III Macroeconomics

Macroeconomic analysis and stabilisation

46 Keynesian income determination diagrams 337(11)

Michael Schneider

47 The IS-LM diagram 348(8)

Warren Young

48 The Fleming-Mundell diagram 356(9)

Russell Boyer

Warren Young

49 The aggregate demand aggregate supply diagram 365(12)

Richard G. Lipsey

50 The Phillips curve 377(16)

Richard G. Lipsey

51 The UV or Beveridge curve 393(8)

Peter Rodenburg

52 The demand curve for money 401(5)

David Laidler

53 Non-neutrality of money 406(6)

He-Ling Shi

54 The Laffer curve 412(9)

Roger Middleton

Growth, income distribution and other topics

55 Intertemporal utility maximization --- the Fisher diagram 421(5)

Thomas M. Humphrey

56 The diagrams of the Solow-Swan growth model 426(6)

Barbara J. Spencer

Robert W. Dimand

57 The Lorenz curve 432(7)

Nanak Kakwani

58 Kuznets curve 439(8)

Lisa Cameron

Lata Gangadharan

Sowmiya Ashok
Index 447

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