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a school of economic ideas based on the writings of MARSHALL, etc., that superseded CLASSICAL ECONOMIC doctrines towards the end of the 19th century Frequently referred to as the ‘marginal revolution’, neoclassical economics involved a shift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 ?
If the state makes it mandatory for employers to grant paid paternity leave alongside paid maternity leave, the neoclassical model will predict that it will reduce gender discrimination in labour market.
(1992) argue that the explicit inclusion of human capital in a neoclassical model may explain some of the phenomena, such as long-lasting differences in growth rates, which were considered to require endogenous growth models.
The standard neoclassical model predicts real wages equalization across countries.
We also consider the case in which home and foreign goods are perfect substitutes (the neoclassical model in table 2).
While I might be willing to forgive him for quoting Paul Krugman in such a context, I cannot forgive him for discussing everything from the failures of the neoclassical model, to econometric methods, to the integrity of the bankers while overlooking entirely the role of the state in setting up perverse incentives for risky investment.
The neoclassical model of profit maximization grew from the work of Carl Menger, William Stanley Jevons, and Leon Walras in the late nineteenth century, and was popularized by the great English economist Alfred Marshall [1920] in the first two decades of the twentieth century.
The author uses a simple neoclassical model to show how liquidity shocks at home and abroad can contribute to trade imbalances and low real interest rates.
However, the basic neoclassical model came under criticism from two main angles:
(These summaries are useful in and of themselves, especially for those students who might have completed their assigned neoclassical readings and still not have a clue what they were saying!) Then the weak spots of the neoclassical approach are exposed, and the implications of those failures to the overall coherence and policy conclusions of the neoclassical model are explored.
Restuccia's survey reflects how the baseline neoclassical model of production can be modified to account for heterogeneity in production, first at the industry level, then at the establish-ment level.
First, Paul Joskow reviews a wide array of advances in microeconomic theory that go well beyond the standard neoclassical model of production and distribution with its anonymous spot markets.
The results show the dominance of two conceptions of the gene: the Neoclassical model and the Mendelian model.