Publication: Journal of Economic Education
Volume: Volume 25, No. 2
Issue: Spring 1994
Pages: pp. 172-178
Author(s): James R. Seldon (The University College of the Cariboo)
Address (Principal Author):James R. Sheldon, Division of Business, Computing and Mathematics, The University College of the Cariboo, Kamloops, B.C. V2C 2J3 Canada (604) 828-5241
Internet Address (Principal Author):
Title: A Death Much Exaggerated: On the Demise of the Long Run
Abstract: Advances in technology, led by computer-aided design and manufacturing methods, have enhanced the abilities of producers in adjusting to new tasks and reacting to shifting markets. The paper examines a claim that the effect has been to render the long run obsolete by collapsing it into the short run. The investigation first considers the treatment of time in Marshall's Principles and then considers the approaches taken in contemporary texts. The results suggest that misunderstandings can easily spring from failure to recognize differences between formal and colloquial language. It is concluded that the effect of technological change and increased flexibility is to make long-range or long-term planning less critical, but it makes economic long-run decisionmaking all the more relevant.