Elasticity of expectations and general equilibrium instability in Hicks, Lange, Modigliani and Patinkin

Inspired by Value and Capital, published by John R. Hicks in 1939, Oskar Lange and Don Patinkin interpreted chapter 19 of the General Theory as raising the issue of the stability of a general equilibrium. This paper studies the way these three economists and Franco Modigliani analyzed the role of expectations in this context. It argues that Value and Capital contained a research program first distorted by Lange then rejected by Patinkin and Modigliani.