The End of the Stockholm School

Abstract

In 1937, Ohlin argued that the theory of employment had been developed independently in Sweden. Why then were the Stockholm School and, specifically, its original contribution-the dynamic method-unable to achieve an international breakthrough? On the basis of an analysis of Erik Lundberg's dissertation Studies in the Theory of Economic Expansion (1937), it is suggested that the lack of acceptance was due to the following characteristics of the Stockholm School: disinterest in equilibrium analysis, a preference for casuistic analysis, and lack of instruments for analyzing the questions posed by the School itself.