chapter  2
26 Pages

Schumpeter on Walras

ByRichard Arena

Ten years ago, I looked at the influence Leon Walras’s approach to economics had on the formation of the Schumpeterian system of thought (Arena 1992). What I tried to argue then was that, in spite of his many assurances to the contrary, Schumpeter’s own approach to economics clearly differed from that of Walras. Essentially – and notwithstanding his insistence, in all of his major writings, on his high regard for Walras’s economics – Schumpeter built a theory in which institutions and ‘stylized facts’ occupy an important space, and which is thus clearly different from Walrasian ‘pure economics’.