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The Concept of Normal Price in Value and Distribution

F. H. Knight

University of Chicago

Quarterly Journal of Economics 1917

"Primary" value theory and distributive theory call for the same formulation of the market price concept but for different conceptions of normal price, 66. — Contrast of market price and normal price points of view, equilibrium between amounts vs. between rates of flow, 68. — Limitations; meaning of cost of production, 72. — Clark's "Static State" the same concept as Marshall's long-period normal price of consumption goods, but incorrectly applied to distribution, 73. — This concept applicable in "sub-distribution, " which is practically more important than the theorist's division of income into general shares, 84. — Criticism of Marshall's equilibrium levels of wages and interest, 89. — Conclusion: Marshall's theory a correct logical definition, but applicable to reality only as determining a "tendency" which may be overcome by other tendencies; contrast with Clark; contrast with Mill, 95.

DOI
10.2307/1885079
Volume
32 (1)
Pages
66
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