Marshall on Equilibrium and Time. A Reconstruction

The aim of this paper is to put forward an alternative to the standard interpretation of Marshall's conception of equilibrium and time. In this new interpretation, the market-period receives a central role. It is considered as the unit of time of the analysis, on the one hand, and as the only direct observable market reality of the Marshallian construct, on the other. The standard interpretation of Marshall’s equilibrium taxonomy, with its threefold sub-division (market-period, short-period and long-period equilibrium) is proposed instead. An alternative interpretation of Marshall’s corn model is proposed, wherein perfect information is considered as the linchpin of the making of equilibrium. The relationship between market-period and normal equilibrium is re-examinated. It is shown that market-clearing is always realized in Marshallian theory. Finally, it is argued that this reconstruction permits avoiding a series of interpretative pitfalls.