Abstract
Abstract:
This paper aims to explore the two essential factors of Dennis Holme Robertsonʼs theory of economic fluctuation. Of the two, his ʻeffortʼ concept is important as the core of his real theo-ry, and his ʻindustryʼ concept is methodologically significant. These concepts in his first book, A Study of Industrial Fluctuation, offer clarity regarding his economic view and a method of macroeconomic analysis.
The ʻeffortʼ concept implicates the behavioural decision of individuals （micro-analysis）. All humans exert ʻeffortʼ for getting ʻsatisfactionʼ to maximise their ʻnet satisfaction,ʼ that is, the difference between utility and disutility. In other words, any behavioural decisions are based upon the ʻeffortʼ of individuals. The ʻindustryʼ concept is provisionally considered as a coordinated group of individuals. Therefore, the behavioural decision of ʻindustryʼ is assumed to be the same as that of individuals, which is based on an individualʼs ʻeffort.ʼ With these two concepts, Robertson gradually extended his analysis from an individual （micro-analysis） to industries and industry in general （macro-analysis）. This is the very macro analytical method of Robertsonian economics.
The ʻeffortʼ concept is also the core of overall Robertsonian economics; for his subse-quent major theories, ʻcapitalismʼs golden ruleʼ and ʻlacking,ʼ also are grounded in his ʻeffortʼ concept. Any factors, such as the labour-capital conflict or monetary disturbance, can cause fluctuations. For Robertson, however, ʻeffortʼ is the only ʻrealʼ measure and should be assigned the highest weight as the essential factor.
Such a re-evaluation of Robertsonʼs ʻrealʼ theory is expected to furnish some hints with regards to certain outstanding issues of Robertsonian economics: （1） the ultimate cause of discord with Keynes, （2） inheritances from Marshall, and （3） the unified understanding of the ʻrealʼ and ʻmonetaryʼ theories in Robertsonʼs works.
JEL classification numbers: B 13, E 32.
