State Socialism - Italy Economic History

State Socialism, Economic History Of Italy

including many of the "Socialists of the Chair" — has C. F. Ferraris (1850-1924) as its chief representative, he being one of Wagner's pupils. Cusumano, Forti, and Mortara may be classed here, and Lampertico and Luzzatti also held some of the ideas of this group.
The conflicting tendency represented by the Austrian School has been active in Italy, as would be inferred from its adoption, at least partially, by such men as Graziani, Mazzola (1863-1899), R. Volta, and C. Trivero. E. Cossa, Conigliani, Alessio, and Ricca-Salerno also adopted much of the Austrian value theory. As already indicated, Pantaleoni accepted the marginal-utility idea of value in an eclectic sort of way, but by no means followed the Austrian School in their typical conclusions concerning cost and interest. After all, it is in finance that the Austrians have made most converts in Italy.

More recently there has been some tendency to extend Bohm-Bawerk's theory to cover the various types of saving and interest rates.

The doctrine of marginal utility met severe criticism, and among others Supino, Loria, and Rabbeno attacked it. These critics agreed that the emphasis of "marginal utility," including as it does in a single word the ideas of utility and scarcity, means little but a change in terminology, while they regarded the purely subjective tendency as one-sided and as leading to the use of standards which cannot be precise. A. Graziadei (b. 1873) is notable for a penetrating attack upon the psychology of diminishing utility, in which he develops the theory of increasing satisfaction. P. E. Taviani is a more recent critic of any concept of utility which has a hedonistic content.

The Mathematical School, headed by Pareto, has had a strong following in Italy. E. Barone (1859-1924) succeeded Pareto and made important contributions. He has been mentioned in an earlier chapter. U. Ricci (d. 1946), who succeeded Pantaleoni at Rome, developed Pareto's thought in several respects, while criticizing it for excessive abstraction. Graziadei, though not accepting the indifference-curve approach, borrowed from the Lausanne School the general-equilibrium idea and made much use of mathematics. Amoroso, an early student of Cour-not and monopoly price, has done original work in seeking a dynamic explanation of cycles by using time lags. In this, he has been followed by F. Vinci, who sets up "models" for explaining cycle phenomena and attempts a dynamic analysis in three-dimensional form. Caesari, A. Roberto Murray, Tonelli, Del Vecchio, and Boninsegni are other well-known Italian economists of the mathematical type. Marco Fanno and Giulio La Volpe may be classed as mathematical economists.

Starting with early statistical studies concerning the Paretian system (which he thought somewhat too abstract), Bresciani-Turroni8 has gone on to present an outstanding analysis of saving and its relation to social equilibrium, in which he finds himself opposed to the Keynesian doctrine. He is followed by L. Frederici who criticizes the monetary macro-economics and defends the gold standard as a basis for equilibrium. Bresciani-Turroni and M. Fanno hold to the Mises-Hayek theory of business cycles. Fanno has a notable theory of the demand for and supply of money as related to the determination of interest rates.