Neoclassical economics

ASE Bucureşti, 2016 An essay on the hegemony of neoclassical economics Sonnenschein-Mantel-Debreu Theorem Abstract: „For every complex problem, there is an answer that is clear, simple and wrong” This quote is the best representation of the spirit of this essay, carried through all its parts. The objective is not the critique of neoclassical economic theory in itself, but a starting point towards modernising the economic thought using old-new ways of thinking about capitalism

post -Second World War growth period, which is called Golden Age of Capitalism, has a great influence in human economic history. During the period of time, a great many of the capitalist countries have dramatically increased their economy and prosperity, such as United State which has a substantially economic expansion at an average rate of 3.5% annually between 1945 and 1970. Economic growth may be resulted by deregulation of market, rise of automotive manufacture and industrialization which contribute

In the era of capitalist globalization, the economic growth of China has made the country a possible regional leader with the potential to become a global power. With respect to economics, China’s capitalist market has become a key international player in global politics. One way of conceptualizing the phenomenon of economic expansion in China is through the examination of traditional and contemporary IR theories. China’s remarkable economic growth, which exemplifies their “socialist market economy

There are many differences between mainstream economics/neoclassical economics and political economics. Currently, mainstream and neoclassical economics are the dominant approach in economics. They use math to prove theories and to forecast events. If someone progresses as an economics major, they will enroll in statistic classes and econometrics, which is more quantitative. Since mainstream and neoclassical economics are more measurable, there is a higher chance for error. In order to ensure the

John F. Henry titled The Illusion of the Epoch: Neoclassical Economics as a Case Study. This essay written by John F. Henry is an examination of ideas put forward by Karl Marx as well as Friedrich Engel in The German Ideology and their correlation with the principles of neoclassical economics. This idea is referred to as the “Illusion of the epoch” and is described by Henry as being “A conceptual framework in which the ideas of the dominant economic class are the dominant ideas in a society and increasingly

Ecological Economics vs Neoclassical Welfare Economics In the past, the economic school of thought regarded the resources as unlimited and focused on more production under the light of the unlimited growth assumption. Every economic action was suggested to only consider about making more profit. While the economy and the human population are growing; more natural resources are used and more pollution is observed. Human become to deal with the results of its production such as environmental problems

Neoclassical Economics is an attempt to restore some of the principles that Adam Smith, a pioneer for capitalist markets, advocated for in his Classical Economic theory. Smith suggested that minimal intervention should be required regarding government policy as the laws of supply and demand will be self-correcting. John Maynard Keynes was an important figure that worked to apply fiscal policy that would remedy an economic depression. Keynes’s idea of fiscal policy is the means by which government

theories try to explain this phenomenon with emphasis with capital accumulation being one of them. I will start by developing the standard neoclassical growth model as developed by Solow(1956)[1]. I will then proceed to discuss the extensions that have been made to this basic model in an attempt to better understand actual growth figures, for e.g. the standard neoclassical model cannot explain the magnitude of international differences in growth rates. Mankiw[2] points out that “the model can explain

Neoclassical economics of migration focuses on individual decision to attain higher wages by migrating to a new higher wage country. Migration between Puerto Rico and the United States is an example of this theory. Analysis has been done that illustrates when Puerto Rico’s unemployment rates are high migration to the mainland in the United States for work is high. Although Puerto Rico is a common wealth of the United States migration between the two represents significant movements across linguistic

1. Discuss the contributions to the “human side of enterprise” as articulated by Elton Mayo, Chester Barnard, Abraham Maslow, and Douglas McGregor. Elton Mayo, Chester Barnard, Abraham Maslow, and Douglas McGregor were four theorists that helped establish the foundation of the neoclassic theoretical perspective; which deals with the human factor. These theorists created a human relations movement to deals with the factors, that benefit the worker and encourage higher performance, such as, improved