The Review of Economics and Statistics Vol. 36 No. 1 1954
A New Survey of Demand Analysis
Abstract
substantial effect on the economy. It must be granted that the point is correct and important. Nevertheless, having so often seen this position taken as a routine matter even in course lectures, I can only wonder if the contrary view is as widespread as Professor Copeland seems to believe. Still more is blamed on the hydraulic view. The Robertsonian lag in expenditure behind receipts is questioned regarding its verifiability (how can we tell the date of receipt of the dollar we are spending now?) and its realism (some of receipts may even be spent at once). But surely this is taking the period analysis too literally. None of us, least of all, I dire say, Professor Robertson, really believes that our system is characterized by neat distinguishable lags. Their use is a device employed with explicit or implicit apology to represent the plausible hypothesis that current consumer expenditures are to a considerable extent dependent on past receipts. The lag is the formalization and hence the exaggeration of a vague psychological connection. Moreover, it is in no way connected with any statement of the genus: today's expenditure employs the very coins, bills, and so forth, which were received yesterday as appears to be implied. It is not quite clear just how some of these points are related to the hydraulic analogy.2 More important, the author seems to take theoretical abstractions at face value and to attribute obliquity to positions of his which are in fact quite generally accepted. I suspect that this polemic material may therefore result primarily in drawing the reader's attention from the volume's main contribution. In sum, this book represents the inauguration of an important task. As such, we must welcome it and apologize for the review's undue emphasis on less important sections of the work which even on the dimmest interpretation distract rather than deduct from its value.
- DOI
- 10.2307/1924886
- Volume
- 36
- Issue
- 1
- Pages
- 104
- Sources
- openalex crossref