Neoclassical economics

According to Rittenberg and Tregarthen (2009), economics is “a study of choice”. This simple assumption is the most basic definition of the general economic thought because if there is a scarcity present, then there is a choice to be made about this scarce resource. Moreover, Rittenberg and Tregarthen (2009) also point out that what distinguishes economic approach from any other science, whether social or not, is that economists study this “choices” assuming that people try to maximize their…

Behavioral Economics truly defines why economics is deemed a social science. Economics meets psychology: these studies combine to create a unified study of behaviors behind economic thought and decisions individuals make. Behavioral economics became popular in the late 70’s, where individuals such as Daniel Kahneman a Nobel Prize winner and Amos Tversky who worked closely with Kahneman, painted the world with possibilities and insights to the fairly new economic study of behavioral economics.…

Although he is most frequently regarded as the last great classical economist, Mill lived through an active period of nineteenth-century intellectual and socialist criticism of classical economics. Being the sensitive, humane individual and fiercely independent thinker that he was, Mill could not help but be affected by this criticism. (Ekelund & Hebert, 2007, p. 177). Mill Principles of Political Economy reflects the delicate balance between inductive and deductive reasoning. In matter of…

Jacques-Louis David, a French painter during the neoclassical art period, began his art career painting a few mythology figures and narratives and then later on became an active supporter of the French Revolution therefore influenced the stories for which he depicted in his paintings. In this essay, I will analyze the formal qualities or elements of art such as color, implied motion, and space used as well to analyze the historical/religious context of one of his early paintings before the big…

Discussion on Failure of ISI and Success of the Neoclassical Failure of the ISI Model When discussing the reasons for the failure of the import substitution industrialization model in Chile, one of the first things to consider are the inherent inefficiencies of the protected infant industries. Due to Chile being one of the most protected economies in the developing world, many of it’s industries had little incentive to innovate and become competitive. The survival of these industries, were…

Classical economists were steadfast proponents of the markets, contending markets without interference can naturally maximize both individual and public interests. The economic orders that benefit the whole society emerge as the unconscious result of actions and voluntary transactions of each individual (Friedman & Friedman 2011). Competition within market is positive, through which the pursuit of self-interests by individual, the basic unit of society, can generate the socially beneficial…

Labor migration, as an important fact of economic and social life, could not stay behind attention of scientists and researchers. One of the first serious theoretical foundations of the labor movement should recall to the Neoclassical theory of migration. The basis of this concept, the formation at the forefront of international differences in wage levels. The founder of the theory is J. Hicks and his work "Theory of wages"[4]. He's one of the first scientists who has considered migration as a…

Structure and Change in Economic History through an examination of North’s theoretical propositions and an analysis of his application of these theoretical foundations to various historical periods of rapid economic transformation. Specifically, the first section will pull out North’s primary theoretical assertions and assess their merits relative to their primary theoretical rivals. The second section will examine two of North’s attempts to apply his theory of economic change to empirical…

individual freedom, from the neoliberal perspective, is the government. Also that it is the role of the government to facilitate an uninhibited place for the individual economic participation (pp. 64). The other dominant model that Peters identifies is Social Equity Liberalism (SEL). This model also accepts neoclassical economics as the primary and most efficient method method of stimulating social change. SEL assumes that it is the responsibility of the parts of the government to provide…

Background One of the many enduring puzzles in corporate finance has been the need and outcome of the M&A (merger and acquisition) activities during different times. Generally, history is not discussed in detail for corporate finance owing to the changing market dynamics; however, M&A activities are different in terms of learnings they bring forward. A merger involves a combination of two existing companies into one single entity. Mergers attract consolidation of the industry since it is…