[Correspondence and Editorial Preface]: This segment contains personal correspondence from Professor Horst Claus Recktenwald regarding the work of Gossen and Krelle, followed by the official editorial preface for the 'Klassiker der Nationalökonomie' series. It establishes the historical significance of Gossen's work and the mission of the facsimile library to preserve and analyze classical economic texts. [Editor's Introduction: Gossen's Recognition and Analytical Legacy]: Editor Horst Claus Recktenwald introduces Hermann Heinrich Gossen as a pioneer of economic science whose true importance was only recognized long after his death. The introduction discusses Gossen's analytical contributions, including his laws of marginal utility and their application to modern theories of household optima, public goods, and welfare losses. It also mentions the discovery of a lost manuscript by Léon Walras. [Characterizations of Gossen and His Work]: A collection of quotes and characterizations from famous economists regarding Gossen's personality and the monumental impact of his work. Figures such as Walras, Jevons, Hayek, and Stigler reflect on Gossen's tragic life and his status as the 'Copernicus' of economics due to his mathematical treatment of social laws. [Wilhelm Krelle's Analysis: Gossen's Utility Concept and First Model]: Wilhelm Krelle begins a formal analytical introduction to Gossen's 'Laws of Human Intercourse'. He defines Gossen's concept of 'enjoyment' (Genuss) as modern utility or ophelimity and explains the first law of diminishing marginal utility. Krelle then presents a mathematical reconstruction of Gossen's first model concerning the optimal allocation of scarce time across various consumption activities using the Lagrange method. [Second Model: Consumption and Production Effort]: Krelle analyzes Gossen's second model, which incorporates production effort (labor) into the utility maximization problem. The model assumes that labor initially provides pleasure but eventually turns into disutility (Arbeitsleid). Krelle provides the mathematical derivation for the optimal labor input and total utility, noting Gossen's use of geometric proofs to reach these results. [Third Model: Land Rent and Differential Utility]: This section details Gossen's third model, which introduces land as a second factor of production. Following Ricardian logic, Gossen treats land rent as a differential rent based on location and productivity. Krelle derives the formulas for 'payable rent' and explains how productivity increases affect the optimal labor input and total utility, illustrated by Gossen's geometric figures. [Fourth Model: Savings, Interest, and Utility Measurement]: Krelle explains Gossen's fourth model regarding savings and interest, where future utility is discounted based on survival probability and time preference. The segment also covers Gossen's two proposed methods for measuring utility: one based on linear marginal utility assumptions and a second, more sophisticated method resembling modern 'revealed preference' theory. [Economic Implications: Goods, Money, and General Equilibrium]: The final part of this chunk summarizes Gossen's broader economic theories, including his classification of goods (substitutive, complementary, and production means), the role of money in facilitating trade, and his vision of a general equilibrium where supply equals demand. It concludes with Gossen's policy views, which emphasize the justice of the market, the protection of private property, and opposition to subsidies. [Gossen's Critique of Economic Doctrine and State Measures]: Krelle and Recktenwald summarize Gossen's systematic critique of the prevailing economic doctrines of his time. Gossen argues against the labor theory of value, proposing instead that value is derived from utility (subjective value theory), a shift he compares to the Copernican revolution. The section details his specific views on wealth measurement, the causes of unemployment (mobility issues), the necessity of banning child labor, and the harmful effects of interest rate prohibitions. [Critique of Moralists and Educators]: This segment covers Gossen's philosophical and pedagogical critiques. He rejects traditional theology and revelation in favor of Deism, arguing that the world is a perfect machine governed by natural laws, including the laws of utility. He asserts that human self-interest is sufficient to maintain order. Consequently, he advocates for an education system focused on natural sciences and mathematics rather than classical languages like Latin and Greek. [Gossen's Economic Policy Program]: A detailed overview of the third part of Gossen's work, focusing on his practical economic policy proposals. Key points include the reform of education for gender equality, the implementation of the gold standard to prevent inflation, the protection of private property, and his radical proposal for the state to nationalize all land and lease it to the highest bidder. The authors note the utopian nature of these reforms and their influence on later land reform movements. [The Significance of Gossen: Theory and Reception]: This section evaluates Gossen's historical importance as the first to fully develop the subjective theory of value and the laws of diminishing marginal utility. It discusses his independent discovery of principles later popularized by Jevons and Walras. The text also reviews the scholarly reception of Gossen by figures such as Hayek, Schumpeter, and Spiegel, addressing criticisms of his style and the 'un-German' nature of his mathematical approach. [Philosophical Foundations and the Problem of Power]: The authors analyze the intersection of Gossen's Deism and Utilitarianism. They critique Gossen for failing to account for power dynamics in society, such as unions and cartels, and for his belief that natural laws alone could dictate moral standards or social justice. The segment concludes with a reflection on why Gossen's work was ignored by his contemporaries, attributing it to his difficult mathematical presentation and the dominance of the Historical School. [Gossen's Laws and the Walras Translation: An Odyssey]: Horst Claus Recktenwald compares the fates of two neglected German economic pioneers: Von Thünen and Gossen. He explores how both were ahead of their time in applying mathematical methods to economics. The essay discusses their shared influences (Adam Smith), their independent discovery of marginal analysis, and their attempts to integrate ethics into economic theory through land reform or wage formulas. It also references modern evaluations by Samuelson and Georgescu-Roegen. [Gossen's Biography and the Fate of His Work]: This section examines the biographical sources for Gossen, noting the scarcity of personal information and the loss of primary documents. It details the publication history of 'Die Entwicklung der Gesetze des menschlichen Verkehrs', including Gossen's decision to destroy unsold copies out of disappointment. The text highlights Gossen's contributions beyond his two famous laws, such as his theories on rent and exchange, which were often overlooked even by his admirers. [The Search for Walras' Manuscript - The Fortunate Discovery]: Recktenwald details his multi-year search for Léon Walras' unpublished French translation of Gossen's work. He discusses the methodological importance of biography in understanding scientific progress, contrasting his view with George Stigler's. The search concluded in 1965 when Ida Einaudi provided a copy of the manuscript translated by Walras and Charles Secrétan in 1879. The segment also highlights the contributions of Nicholas Georgescu-Roegen and Paul Samuelson in rehabilitating Gossen and von Thünen for the international scientific community. [Facsimile Documents and Biographical Data of H. H. Gossen]: A collection of primary source documents and biographical data regarding Gossen. Includes a facsimile of the title page of the Walras translation, a poetic tribute based on Schiller, a matriculation extract from Berlin, and Gossen's birth certificate from Düren (1810). It provides a detailed curriculum vitae from his birth to his death in 1858, covering his education, civil service career, and the publication and subsequent withdrawal of his main work. [Publication History and Selected Bibliography]: This segment lists the various editions of Gossen's work (1854, 1889, 1927) and provides a comprehensive selected bibliography of secondary literature. The bibliography includes works by major economists and historians of thought such as Blaug, Bousquet, Georgescu-Roegen, Hayek, Krelle, Recktenwald, Samuelson, and Stigler, focusing on Gossen's legacy and the development of utility theory. [Gossen's Place in the Genealogy of Economics and Author Biographies]: A chronological table (Zeittafel) placing Gossen within the broader history of economic thought, from Plato and Aristotle to the marginalists. It lists birth/death dates and major works of key thinkers. The segment concludes with biographical sketches of the authors, Wilhelm Krelle and Horst Claus Recktenwald, and an advertisement for a facsimile edition of Johann Heinrich von Thünen's 'Der isolirte Staat'.
This segment contains personal correspondence from Professor Horst Claus Recktenwald regarding the work of Gossen and Krelle, followed by the official editorial preface for the 'Klassiker der Nationalökonomie' series. It establishes the historical significance of Gossen's work and the mission of the facsimile library to preserve and analyze classical economic texts.
Read full textEditor Horst Claus Recktenwald introduces Hermann Heinrich Gossen as a pioneer of economic science whose true importance was only recognized long after his death. The introduction discusses Gossen's analytical contributions, including his laws of marginal utility and their application to modern theories of household optima, public goods, and welfare losses. It also mentions the discovery of a lost manuscript by Léon Walras.
Read full textA collection of quotes and characterizations from famous economists regarding Gossen's personality and the monumental impact of his work. Figures such as Walras, Jevons, Hayek, and Stigler reflect on Gossen's tragic life and his status as the 'Copernicus' of economics due to his mathematical treatment of social laws.
Read full textWilhelm Krelle begins a formal analytical introduction to Gossen's 'Laws of Human Intercourse'. He defines Gossen's concept of 'enjoyment' (Genuss) as modern utility or ophelimity and explains the first law of diminishing marginal utility. Krelle then presents a mathematical reconstruction of Gossen's first model concerning the optimal allocation of scarce time across various consumption activities using the Lagrange method.
Read full textKrelle analyzes Gossen's second model, which incorporates production effort (labor) into the utility maximization problem. The model assumes that labor initially provides pleasure but eventually turns into disutility (Arbeitsleid). Krelle provides the mathematical derivation for the optimal labor input and total utility, noting Gossen's use of geometric proofs to reach these results.
Read full textThis section details Gossen's third model, which introduces land as a second factor of production. Following Ricardian logic, Gossen treats land rent as a differential rent based on location and productivity. Krelle derives the formulas for 'payable rent' and explains how productivity increases affect the optimal labor input and total utility, illustrated by Gossen's geometric figures.
Read full textKrelle explains Gossen's fourth model regarding savings and interest, where future utility is discounted based on survival probability and time preference. The segment also covers Gossen's two proposed methods for measuring utility: one based on linear marginal utility assumptions and a second, more sophisticated method resembling modern 'revealed preference' theory.
Read full textThe final part of this chunk summarizes Gossen's broader economic theories, including his classification of goods (substitutive, complementary, and production means), the role of money in facilitating trade, and his vision of a general equilibrium where supply equals demand. It concludes with Gossen's policy views, which emphasize the justice of the market, the protection of private property, and opposition to subsidies.
Read full textKrelle and Recktenwald summarize Gossen's systematic critique of the prevailing economic doctrines of his time. Gossen argues against the labor theory of value, proposing instead that value is derived from utility (subjective value theory), a shift he compares to the Copernican revolution. The section details his specific views on wealth measurement, the causes of unemployment (mobility issues), the necessity of banning child labor, and the harmful effects of interest rate prohibitions.
Read full textThis segment covers Gossen's philosophical and pedagogical critiques. He rejects traditional theology and revelation in favor of Deism, arguing that the world is a perfect machine governed by natural laws, including the laws of utility. He asserts that human self-interest is sufficient to maintain order. Consequently, he advocates for an education system focused on natural sciences and mathematics rather than classical languages like Latin and Greek.
Read full textA detailed overview of the third part of Gossen's work, focusing on his practical economic policy proposals. Key points include the reform of education for gender equality, the implementation of the gold standard to prevent inflation, the protection of private property, and his radical proposal for the state to nationalize all land and lease it to the highest bidder. The authors note the utopian nature of these reforms and their influence on later land reform movements.
Read full textThis section evaluates Gossen's historical importance as the first to fully develop the subjective theory of value and the laws of diminishing marginal utility. It discusses his independent discovery of principles later popularized by Jevons and Walras. The text also reviews the scholarly reception of Gossen by figures such as Hayek, Schumpeter, and Spiegel, addressing criticisms of his style and the 'un-German' nature of his mathematical approach.
Read full textThe authors analyze the intersection of Gossen's Deism and Utilitarianism. They critique Gossen for failing to account for power dynamics in society, such as unions and cartels, and for his belief that natural laws alone could dictate moral standards or social justice. The segment concludes with a reflection on why Gossen's work was ignored by his contemporaries, attributing it to his difficult mathematical presentation and the dominance of the Historical School.
Read full textHorst Claus Recktenwald compares the fates of two neglected German economic pioneers: Von Thünen and Gossen. He explores how both were ahead of their time in applying mathematical methods to economics. The essay discusses their shared influences (Adam Smith), their independent discovery of marginal analysis, and their attempts to integrate ethics into economic theory through land reform or wage formulas. It also references modern evaluations by Samuelson and Georgescu-Roegen.
Read full textThis section examines the biographical sources for Gossen, noting the scarcity of personal information and the loss of primary documents. It details the publication history of 'Die Entwicklung der Gesetze des menschlichen Verkehrs', including Gossen's decision to destroy unsold copies out of disappointment. The text highlights Gossen's contributions beyond his two famous laws, such as his theories on rent and exchange, which were often overlooked even by his admirers.
Read full textRecktenwald details his multi-year search for Léon Walras' unpublished French translation of Gossen's work. He discusses the methodological importance of biography in understanding scientific progress, contrasting his view with George Stigler's. The search concluded in 1965 when Ida Einaudi provided a copy of the manuscript translated by Walras and Charles Secrétan in 1879. The segment also highlights the contributions of Nicholas Georgescu-Roegen and Paul Samuelson in rehabilitating Gossen and von Thünen for the international scientific community.
Read full textA collection of primary source documents and biographical data regarding Gossen. Includes a facsimile of the title page of the Walras translation, a poetic tribute based on Schiller, a matriculation extract from Berlin, and Gossen's birth certificate from Düren (1810). It provides a detailed curriculum vitae from his birth to his death in 1858, covering his education, civil service career, and the publication and subsequent withdrawal of his main work.
Read full textThis segment lists the various editions of Gossen's work (1854, 1889, 1927) and provides a comprehensive selected bibliography of secondary literature. The bibliography includes works by major economists and historians of thought such as Blaug, Bousquet, Georgescu-Roegen, Hayek, Krelle, Recktenwald, Samuelson, and Stigler, focusing on Gossen's legacy and the development of utility theory.
Read full textA chronological table (Zeittafel) placing Gossen within the broader history of economic thought, from Plato and Aristotle to the marginalists. It lists birth/death dates and major works of key thinkers. The segment concludes with biographical sketches of the authors, Wilhelm Krelle and Horst Claus Recktenwald, and an advertisement for a facsimile edition of Johann Heinrich von Thünen's 'Der isolirte Staat'.
Read full text