Pigou on the microeconomics of speculation: Institutions and economic welfare.

This paper examines Arthur Cecil Pigou's microeconomic analysis of speculation. Although Pigou's treatment of speculation has been examined insofar as it relates to his theory of the business cycle, his microeconomic analysis of speculation has received very little attention from historians of econo...

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Published in:Cambridge Journal of Economics Vol. 50; no. 4; pp. 627 - 649
Main Author: Stevens, Riko
Format: Article
Published: Oxford University Press / USA Jul2026
Subjects:
Online Access:View this record in EBSCOhost
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      dt: Jul2026
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        10.1093/cje/beag016
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        atl: Pigou on the microeconomics of speculation: Institutions and economic welfare.
      aug:
        au: Stevens, Riko
        affil: University of Notre Dame Australia, Fremantle, AustraliaUniversity of Western Australia, Perth, Australia
      su:
        Welfare economics
        Social institutions
        Microeconomics
        Recessions
        Speculation
      sug:
        subj:
          Welfare economics
          Social institutions
          Microeconomics
          Recessions
          Speculation
      keyword:
        copyrightHolder:Cambridge Political Economy Society
        copyrightYear:2026
        economic welfare
        inLanguage:en
        institutions
        organised markets
        Pigou
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/cje/beag016
        speculation
        copyrightHolder:Cambridge Political Economy Society
        copyrightYear:2026
        economic welfare
        inLanguage:en
        institutions
        organised markets
        Pigou
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/cje/beag016
        speculation
      ab: This paper examines Arthur Cecil Pigou's microeconomic analysis of speculation. Although Pigou's treatment of speculation has been examined insofar as it relates to his theory of the business cycle, his microeconomic analysis of speculation has received very little attention from historians of economic thought. This paper contributes to the literature by illustrating how Pigou's microeconomic analysis of speculation fits within his landmark economic welfare framework. More specifically, it sheds light on an overlooked institutional theme therein—namely, that his assessment of the welfare consequences of speculation depends crucially upon the nature of the institutional context within which that activity takes place. This paper not only provides a more faithful representation of Pigou's microeconomic treatment of speculation but also highlights some of its more fruitful aspects with relevance for modern economic analysis.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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