This article explores the application of the principle of continuity to general equilibrium theory by Vilfredo Pareto, Gustav Cassel, and Knut Wicksell. It begins by recapping Pareto’s early works based on cardinal utility and continuity. After that, Cassel’s proposal of an elementary framing for general equilibrium with discontinuous functions is presented. The next section covers some unpublished letters between Pareto, Maffeo Pantaleoni, and Cassel related to the issue. It is followed by a review of the reception of Cassel’s ideas advanced in his 1899 Grundriss. In the end, some reflections are offered on the scientific implications of the principle of continuity to neoclassical economics.
|Journal||European Journal of the History of Economic Thought|
|Publication status||E-pub ahead of print - 11 May 2021|