Lausanne School

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The Lausanne School of economics, sometimes referred to as the Mathematical School, refers to the neoclassical economics school of thought surrounding Léon Walras and Vilfredo Pareto. It is named after the University of Lausanne, at which both Walras and Pareto held professorships. Polish economist Leon Winiarski is also said to have been a member of the Lausanne School. [1]

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Contents

The term Lausanne School was first coined by the mathematician Hermann Laurent in his article Petit traite d'economie politique mathematique (Small Treatise on Mathematical Political Economy). [2] The central feature of the Lausanne School was its development of general equilibrium theory. Laurent's article presented a simplified version of this theory. [2]

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Lausanne School is also associated with the Italian School and the Paretian School, which were based on the works of Pareto. [3] The school is distinguished from the work of Alfred Marshall by the way it maintains the necessity of considering the interaction of all parts of the economy simultaneously so that the behavior that occurs within any part of it can be understood. [4] Marshall, on the other hand, preferred to solve economic problems using mathematics as the instrument, with the theorist drawing out conclusions instead of coming up with solutions through the process of verbal reasoning. [4]

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References

  1. Garrouste, Pierre and Ioannides, Stavros. (2001). Evolution and Path Dependence in Economic Ideas (Lausanne school: Winiarski a member, pg. 184). Edward Elgar Publishing.
  2. 1 2 Faccarello, Gilbert; Kurz, Heinz D. (2016). Handbook on the History of Economic Analysis Volume II: Schools of Thought in Economics. Cheltenham, UK: Edward Elgar Publishing. p. 281. ISBN   9781849801119.
  3. McLure, Michael (2007). The Paretian School and Italian Fiscal Sociology. Hampshire, UK: Palgrave Macmillan. p. 19. ISBN   9781349547982.
  4. 1 2 Cate, Thomas (2013). An Encyclopedia of Keynesian Economics, Second edition. Cheltenham, UK: Edward Elgar Publishing. p. 387. ISBN   9781849801720.

Further reading