I owe thanks to F Bosch-Font, M. J Bowman, R. Layard, G. Psacharopoulos, the participants of the 1975 Conference of the International Institute of Public Finance, and several anonymous referees of this journal for helpful comments on an earlier version of this paper. However, being obdurate by nature, I have not taken account of all their comments. They are therefore in no way responsible for what follows.

I. Introduction: The need for a reconsideration, 211. — II. The first phase of the debate, 1819–1844, 212. — III. The second phase: the Ten Hours Bill, 217. — IV. Mill's disciples and Jevons, 221. — V. Evaluation of the classical analysis, 223.