The Mathematical Method in Political Economy

Abstract

THE usefulness of mathematical reasoning applied to political economy, the value of the methods originated by Cournot and developed by Jevons, may be said to be still sub judice. The consideration of Messrs. Auspitz and Lieben's diagrams and symbols tends to confirm the opinion that mathematical analysis is a potent, if not an indispensable, means of obtaining clear general ideas in economics. The metaphysician who twists and turns the terms force and energy without I grasping their mathematical signification is not more likely to become entangled in his talk than the practical man who reasons about supply and demand, and cost and value, without having once for all considered the ideas in their clearest and most abstract form. For the purpose of this contemplation Messrs Auspitz and Lieben employ a construction differing from most of their predecessors; namely, a figure in which the abscissa represents the quantity of a certain commodity, the ordinate the amount of some other article—in particular, money—which is exchanged for that which the abscissa represents. We cannot, however, quite admit the statement: “Unsere Kurven unterscheiden sich schon durch die zu Grunde gelegten Koordinaten von Jenen unserer Vorgänger.” The same construction is used in the papers of an eminent English Professor, which, though unpublished, have been widely circulated in the learned world. It has also appeared in at least one English publication, Mr. Edgeworth's “Mathematical Psychics,” with due acknowledgment to the distinguished originator.

Untersuchungen über die Theorie des Preises.

Von Rudolf Auspitz Richard Lieben. (Liepzig: Verlag von Duncker und Humblot, 1889.)