Arthur Cecil Pigou Pigou was a British economist (), disciple of Alfred Marshall, whom he succeeded as a professor at Cambridge. Arthur Cecil Pigou (November 18, – March 7, ) was an English economist. As a teacher and builder of the school of economics at Cambridge. Arthur Cecil Pigou (–), professor of political economy at Cambridge University from to , is today best known for his contributions to the.

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The ” New Welfare Economics ” that arose in the late s dispensed with much of Pigou’s analytical toolbox altogether.

He would march out on an afternoon walk to Coton or thereabouts.

I have always believed that this was the sad but necessary cost of the revolution of thought. The English economist Arthur Cecil Pigou is best known for his basic contributions to the theory of welfare economics and for his defense of neoclassic economics against the attacks of the Keynesian school. By using this site, pigoou agree to the Terms of Use and Privacy Policy.

Once these criticisms had been voiced, other economists felt bound, from a purely academic standpoint, to examine their validity. It follows from the artur effect” that Keynes’s “under-employment equilibrium” is not a true equilibrium but a state of disequilibrium occasioned by inflexible wages and prices.

In appeared Unemployment, a small, popular book in which Pigou, following the thinking of that time, attributed unemployment principally to lack of flexibility of wage rates.

Canadian Journal of Economics and Political Science In Pigou published The Theory of Unemployment, a book that was held in great esteem by orthodox economists. But it was enshrined in the more fundamental belief that if you could not find it in Marshall, it was because Marshall had had to write for the general reader and not because the idea would have been anything new to Marshall.

Wealth and Welfare treated rather scantily the whole question of taxation as it involves transfers from the relatively rich to the relatively poor, which later editions of Economics of Welfare treated more fully and systematically. In a couple of lectures delivered in he made a more favourable, though still critical evaluation of Keynes’ work: The Editors of Encyclopaedia Britannica.

It is interesting to go back to that book, not only for its matter but also for its method, which remained characteristic of Pigou throughout his life pigoy which deeply impressed his pupils. His first book eschews mathematics completely.

Arthur Cecil Pigou – Wikiquote

His idea, now known as the Pigouvian tax, is to force producers to pay a tax equal to the external damage caused by their production decisions in order to allow…. But his conclusions were inherently so radical that they evoked criticism and resistance among economists who would not have felt equally critical of his more familiar and acceptable arguments where they related to monopoly or public utility pricing. In a competitive economy, decisions are made in such a way as to maximize private net product but not necessarily social net product.


He was always a protector and defender of the underdog. Retrieved from ” https: Being the Burney Essay for We do not, in short, and there is no reason why we should, start from a tabula rasabinding ourselves to hold every opinion which the natural man entertains to be guilty until it is proved innocent. Pigou argued that negative externalities costs imposed should be offset by a tax, while positive externalities should be offset by a subsidy.

If you were working with him, you had to satisfy him that what you proposed was a completely just solution of the problem in hand. No account of Pigou would be complete without mention of the mountains. Other sites 1 entry edit. A Cambridge Alumni Database.

Wikiquote 1 entry edit. The greater part of Wealth and Welfare as originally written, and an ever-increasing part of it as it grew through the various editions of Economics of Welfare, was devoted, in the first place, to the differences between social and private marginal net products arising from imperfect divisibility, to elements of monopoly and similar factors, and to the methods of controlling monopoly and otherwise correcting these divergencies; second, it considered methods of remunerating labor and the practicability and desirability of interference to raise the wages of poorer workers.

He served as a member of the committee on currency and foreign exchange and of the royal commission on income tax One of his early acts was to provide private financial support for John Maynard Keynes to work on probability theory.

Arthur Cecil Pigou —professor of political economy at Cambridge University from tois today best known for his contributions to the theory of economic welfare. When Pigou asked for something to be published in the Economic Journal, which at that time Keynes and I edited, Keynes would accept it without demur but would seek to persuade Pigou to agree to minor changes on points where he believed that subsequent discussion might show Pigou to be wrong.

But most of us as undergraduates hardly knew him outside a lecture room, while we knew Keynes quite intimately, through his Political Economy Club. London School of Economics and Political Science.

Pigou, Arthur Cecil

CambridgeCambridgeshireEngland. He was professor of political economy at Cambridge from to This is very far cecll the form of argument of the modern, statistically minded economist.


He admitted that certain conclusions rested on assumptions that could not be proved, but he believed that these assumptions accorded best with the available evidence. Please try again later.

Arthur Cecil Pigou

In defense of Marshall, Pigou was prepared, if necessary, to sacrifice himself. The chair had long been promised to former Pugou pupil Herbert S.

It was not until the coming of Piero Sraffa in the middle s and of such younger lecturers as Joan Robinson and John Hicks in the s that Cambridge escaped from an uncritical acceptance of the Marshallian orthodoxy; but then, and even much later, through Robertson, Guillebaud, and others of us, Cambridge retained its essentially Marshallian tradition. Unlike the present generation, he tended to write books rather than articles, although on occasion he contributed the latter also.

Marshall had crcil as had Bastiat and others before him the concept of maximum satisfaction and the conditions under which an economy would achieve it.

In later editions Pigou slightly modified his actual presentation of the argument for increased welfare with less inequality of income, but the essentials remained the same. Occasionally he would ask privileged pupils and friends David Champernowne for example to help him with mathematical or other analysis and accept from them criticism and suggestions.

The central concept of his analysis was the distinction between private and social net product—private product being the product that accrues to the individual making a decision concerning production, and social net product being the net product that accrues to society as a result of the decision.

Arthur Cecil Pigou – Wikidata

Print this article Print all entries for this topic Cite this article. Pigou was born on Nov. The subsequent discussions of welfare theory have started with the problem of the meaning and measurability of utility and that of the validity of interpersonal comparisons and have inevitably led to the difficulties of measuring the national income in welfare terms and defining the circumstances in which it can be said to have increased. Those who came to it when it had acquired middle-aged embonpoint would do well to restudy it in its slimmer, more youthful, and more rapidly moving form.

Through Marshall’s efforts, Pigou began lecturing in economics himself inbecame a fellow of King’s in and won the coveted Adam Smith Prize in