363. D. H. Robertson to Harrod , 10 August 1934 [a]

[Replies to a letter not found. Follows on from 362 ]

Trinity [College, Cambridge]

10 August 1934

My dear Roy,

Thank you very much,--I am consoled, and I think persuaded,--though I might be burnt at the stake if I admitted it: for one may not deal in Pigouvian rents here nowadays in connection with the cost curves of particular industries! [1]

So I think the "neo-real" method is vindicated,--though it is difficult to avoid in practice talking either in form of labour or of money! And I still dislike the argument that costs aren't costs because they are somebody's income! [2]

How packed full of meat your book is. I seem to get more out of it every time I turn to it,--such a contrast to Ohlin's flabby acres. [3]



  1. 1. Reference is to A. C. Pigou, Economics of Welfare (1928), appendix III, § 20: see letter 362 , [jump to page] .

    2. "The increment of cost due to higher values of the goods coal-fields, whether going to higher royalties, profits, or even wages, to those engaged in them, is offset by the rise in the reward that these factors receive, and must not be counted in as an extra cost when we assess the national gain or loss from the trade": Harrod, International Economics ( 1933:10 ), p. 26.

    3. B. Ohlin, Interregional and International Trade, Oxford: at the University Press, and Harvard: at the University Press, 1933.

    1. a. ALS, one page on half sheet, in HP IV-990-1069/19.

Welcome page

top of page

Return to index of this section

Go to previous page

Go to next page