neoclassical economics

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neoclassical economics

a school of economic ideas based on the writings of MARSHALL, etc., that superseded CLASSICAL ECONOMIC doctrines towards the end of the 19th century Frequently referred to as the ‘marginal revolution’, neoclassical economics involved a shift in emphasis away from classical economic concern with the source of wealth and its division between labour, landowners and capitalists towards a study of the principles that govern the optimal allocation of scarce resources to given wants. The principles of DIMINISHING MARGINAL UTILITY and STATIC EQUILIBRIUM ANALYSIS were founded in this new school of economic thought.
References in periodicals archive ?
Traditional neo-classical economics starts by a utility-maximization assumption to generate models that try to predict how people make economic choices.
must take its ultimate criterion from outside economics." (202) Neo-classical economics is based largely on the assumption of self-interest in the name of income, profit, or wealth maximization.
Currently, the political dominance of neo-liberalism suggests economic aims which are dictated by the neo-classical economics that underpins neo-liberalism.
In the spirit of both traditions the book takes issue with orthodoxy, especially neo-classical economics, from its outset and seeks to present a heterodox alternative to business-as-usual analyses of the all and ever more important built environment.
As an 'anti-economics' textbook, Credo provides a radical, ecological economics critique of a range of neo-classical economics principles as they are taught today as well as the practices that they inform.
As Khan writes, '[t]he heterodox authors or approaches reviewed in this chapter identify limitations of neo-classical economics as an adequate framework for understanding development' (76).
Orthodox neo-classical economics, as Geoffrey Ingham has noted, 'does not attach much theoretical importance to money', seeing it simultaneously as one more commodity subject to standard microeconomic analysis and as a pure medium of exchange, a 'neutral veil' (2004, 7).
Exhibiting his brilliance and departure from neo-classical economics by placing emphasis on aggregate demand, Keynes soon came to become a contemporary and great economist in his own right--arguably, at the expense of Pigou and his social welfare approach to econometrics.
Belich shuns cultural superiority factors--common law, Protestant work ethic, representative institutions--in an effort to provide "a new explanation for the explosive growth of English-speaking societies in the nineteenth century (p.548)." His snipping at neo-classical economics, his emphasis on hype and irrationality in economic development (pp.96-7; 163), may be an instance of current events informing history.
McIntyre asserts that there is little division between neo-classical economics and contemporary human rights.
It presents a comprehensive overview of theoretical explanations offered by the classical political economy, Marx's analysis of capitalism, neo-classical economics, institutional economics, Keynesian economics, new classical economics, post Keynesian economics and neoliberalism.
(9) Although not the result of quite the same influences, a profound deficiency arose in classical liberal thought in the nineteenth century as the emphasis came to rest almost exclusively on economic theory (classical and neo-classical economics), seen as a science rather than a larger philosophy.