Description
Book SynopsisAdam Smith turned economic theory on its head in 1776 when he declared that the pursuit of self-interest mediated by the market itself - not by government - led, via an invisible hand, to the greatest possible welfare for society as a whole. This title examines how subsequent economic thinkers have challenged or reaffirmed Smith's doctrine.
Trade ReviewWinner of the 2010 Best Book Prize, European Society for the History of Economic Thought "Adam Smith's 'invisible hand' and the notion that self-interest can be best tamed by market interaction have been the center of policy disputes since the late 18th century... Medema chronicles the linkages between the debates of Smith's time and those of today... Highly recommended."--R. B. Emmett, Choice "In a way [The Hesitant Hand is] very specialist, being about the evolution of the approach to economic welfare since the Ancient Greeks, but particularly since Adam Smith. But ... I'm finding it unexpectedly thought-provoking. The different perspectives on the definition and assessment of welfare over the ages does indeed shed light on current debates about welfare, market failure and the role of the state."--Diane Coyle, The Enlightened Economist "This is an excellent book on an important topic, the history of which is fascinating."--Peter Groenewegen, Economic History Review "The Hesitant Hand gives readers a wonderfully accessible and stimulating overview that is rich in methodological and historical insights, suggesting potential paths for further inquiries... The Hesitant Hand is highly recommended."--Susan Schroeder, Australian Economic History Review "I hope this book shall be read widely by those who study the history of economic thought and those who seek an examination of an important fundamental economic problem: the linkage between self-interested behavior and the appropriate role of government."--Daisuke Nakai, History of Economic Thought "There are too few nuanced accounts of economic policy, so Steven Medema's The Hesitant Hand: Taming Self-Interest in the History of Economic Ideas is a welcome addition to the economics literature. It should be widely read and discussed... I strongly encourage anyone interested in thinking about economists and government policy to read this book; it gives a much better sense of how economists should think of policy analysis than just about any textbook."--David Colander, Eastern Economic Journal "I finished reading Medema's book eager of a more complete picture of the microeconomic theorizing about the 'hesitant hand' in the twentieth century. I hope that in a future work Medema will give us this broader picture, displaying again the exemplary scholarship and outstanding narrative skills that he showed in this book."--Ivan Moscati, History of Economic Ideas "The reader is offered a thought-provoking and beautifully written journey along three centuries of economic ideas... Medema has produced a masterful example of how the traditional, 'thin' methodology of doing the history of economic thought may still be extremely useful and fertile... The volume will also prove excellent as a teaching tool at graduate and undergraduate level and, at the same time, will cater to the needs of economists and other social scientists."--Nicola Giocoli, Journal of Economic Methodology
Table of ContentsAcknowledgments xi Prologue 1 Chapter One: Adam Smith and His Ancestors 5 Chapter Two: Harnessing Self-Interest: Mill, Sidgwick, and the Evolution of the Theory of Market Failure 26 Chapter Three: Marginalizing the Market: Marshall, Pigou, and the Pigovian Tradition 54 Chapter Four: Marginalizing Government I: From La Scienza delle Finanze to Wicksell 77 Chapter Five: Coase's Challenge 101 Chapter Six: Marginalizing Government II: The Rise of Public Choice Analysis 125 Chapter Seven: Legal Fiction: The Coase Theorem and the Evolution of Law and Economics 160 Epilogue: Everywhere, Self-Interest? 197 References 201 Index 225
