Clark John biography

Clark, John Maurice, Clark John Maurice - John Maurice Clark, the son of the better famous John Bates Clark, considered himself a follower of Weble, Mitchell and Commons, in short, an institutionalist, but he did not claim to create a new economic theory that would take place of orthodox theory of price. On the contrary, he was convinced that the orthodox theory of prices did not lead to big mistakes since it was born.

The problem was that its concern with static equilibrium deprived her of all value in solving practical problems. Thus, he saw the task of his life in developing the dynamic consequences of economic theory. In this sense, he relied on the fundamental difference between the statics and the dynamics that his father defended, agreeing with him and in this sense with Marshall in the fact that the analysis of static balance is not a completion, but only the beginning of a thorough study of economic phenomena.

This point of view is perfectly summarized in its most famous article “To the concept of effective competition” Toward a Concept of Workable Competition, which was fairly considered as having a greater impact on the development of industrial organization as a special field of research in economic science, than any other publication since the “theory of monopolistic competition” of Chamberlain.

The concept of perfect competition with its properties of optimality by Pareto is, as everyone knows, inappropriate in the form as it is formulated, to any real market economy. In order to evaluate the activities of industries and develop effective antimonopoly laws to maintain competition, it is necessary to certainly determine the “current” rather than “perfect” competition.

The task of Clark in this article was to propose not a set of mechanical rules, but some empirical rules regarding the freedom of entry and alternative capabilities available to consumers in order to help the courts evaluate whether the industry is in a state of effective competition or not. The article by Clark caused the rapid development of research in the years in the region, which was called the "structural-functional-functional model of the industrial organization." Belly to take the times closer to us, then another echo of Clark's article is the development of the theory of “Competitive markets”.

Only the article by Clark “Acceleration of Business and the Law of Demand” Business Acceleration and the Law of Demand, and his book “Research on the False Cost Economics” in the Economics of Overhead Costs, gained fame comparable to its essay competition. The article returned to life the principle of the accelerator of the afttalion any change in consumer demand leads to an even greater change in investment demand and associated it with the emergence of business cycles.

The book on overhead costs studied the role of internal economy on the scale of production in explaining the growth of monopolies, the difference between internal and external economy and between saving in production and in marketing. It was a book corresponding to its era in the sense that all its elements entered the work of later authors, but it is full of remarkable foresight and is very useful for demonstrating how Chamberlin and Robinson soon came to their theories of monopolistic and imperfect competition.

John Maurice Clark was born in Northhampton, Massachusetts, in the year, visited the Amherstsk College, where he received a bachelor's degree in the year. He was engaged in his graduate studies on economic theory at Columbia University, his father taught there, having received a doctoral degree for a dissertation on pricing on railways, strangely entitled “Standars of Reasonableness in Local Freight.

Discriminations, he has already begun to teach at college Colorado, but moved to Amhert, from where he went to the University of Chicago five years later. He left Chicago to become a professor of economics at Columbia University, where he remained more than 30 years before retirement of the year. He was the president of the American Economic Association in the year. This organization awarded him the medal of Francis A.

Walker in the city of he died in the year of 79 years. Clark published incredibly a lot of work on the problems of antitrust legislation, business cycles, economic costs of war, the problems of post -war demobilization, macroeconomics of demand management, inflation theory, the functioning of the labor market and the prospects for the development of capitalism.

However, few of his books remained in his memory, since he is inclined in the manner of John Stuart Mill to express ideas as a whole, with all the corresponding reservations and modifications. Thus, a thorough reading of “strategic factors in business cycles” Strategic Factors in Business Cycles is required, to notice how many Keynes's ideas anticipated this work.Similarly, his “alternative to serfdom” Alternate to serfdom,, the answer to the “road to slavery” by Road to Serfdom, Friedrich Hayek, is rarely considered as an extremely effective answer to Hayek’s anxiety about “crawling inflation”.

Finally, his last book “Competition as a dynamic process” Competition as a Dynamic Process contains much of what was later proclaimed as one of the great ideas of modern Austrian economic theory, namely, that the orthodox economy is a theory of equilibrium states, while it does not contain the theory of the process by which competition is achieved. This once again recalls that there is nothing new in the history of economic thought, or, more precisely, everything that claims to be novelty should be stated in such a way as to attract attention.

Literature: J. Sills Macmillan Free Press,