Marshallian theory reveals market clearing can coexist with disequilibrium.
The article explores whether market clearing was already present in Marshallian economic theory before new classical economists emphasized it. The researchers argue that market clearing is indeed a key aspect of Marshallian theory, showing that it can coexist with disequilibrium. They also find that this concept extends to the labor market, including in modern Marshallian models like Friedman's Phillips Curve, where unemployment is not explicitly considered.