Neoclassical economics

The comparison between the neoclassical economics advocated by Kenneth Arrow and information economics by George Stigler show the different point of view towards the function of market and the economical mechanism to fix the market failure and improve the economic performance and social welfare. The two points of views differs mainly on whether the government should way in when the economy is facing trouble and need to resolve some market failures that are currently affecting the well-being of people. According to George Stigler, the benefits of governmental involvement is mainly through monetary supports including direct subsidy and flexible tax policy. However, Arrow believes that government should not involve too much in the business operation.…

The hard-core of neoclassical economic theory has been criticized, it constructed a protective belt that helped adjusts the main ideas. The protective belt theory includes environmental economics that help keeps the strong core of neoclassical economics. It explains the hard-core of the neoclassical economic research program and protects it from negative heuristic attacks. Environment economic seeks to find how the environmental impacts the economy, which leads to the decisions rational people…

The neoclassical economic model gives an exceptionally fulfilling clarification of why parties are willing to join hands and enter into a contracts. Parties enter into contracts with their own free will without any coercion. Hence each party will enter into a contract only if its anticipated benefits are greater than the expected costs. For example assume that a house owner offers to pay a painter $5,000 to paint her home. The house owner must expect the value of the benefits she receives from…

Economic development, if not bizarre, is a buzz word with many connotations. In the history of human civilization it refers to a process of change implying progressiveness of a society. Contemporary development economists, development practitioners and policy makers and development institutions view development through a broad framework. It has long been understood that economic development is about much more than rising incomes (Besley & Persson, 2011). Precisely the broader objectives of…

Homo economicus or the economic man can be referred to the concept of many theories of economics. It portrays human beings as self-interested and rational agents, who pursue optimally the subjectively defined ends. Homo economicus maximizes the utility as the customer and profitability as the producer. The whole theory is compared to the different concepts of economic behavior, cognitive biases as well as homo reciprocans. In the game theory, the homo economicus is related and associated with…

century. Also, hunt “took a prominent part in the founding of the American Institute of Architects” (The Editors of Encyclopaedia Baritannica, 2/10/2015) and became the third president of the American Institute of Architects, between the years 1888 and 1891. Richard Morris Hunt brought the manners and traditions of the French Beaux Arts style to America. Which made him the leading architects of the Beaux art style in America. The Beaux Art style is a lavish subset of the Greek and…

in evaluating an experience. Thus, measuring total utility and SWB may lead us to opposing conclusions due to systematic errors in how individuals process the utilities of experiences. 2. In their research paper “Between Calm and Passion: The Cooling-Off Period and Divorce Decisions in Korea”, Dainn Wie and Hyoungjong Kim analyse the impact of a ‘cooling-off period’ on consensual divorce decisions for heterosexual couples in South Korea (henceforth referred to as Korea). Specifically,…

The Telecom Building, Wellington I have chosen the (Old) Telecom Building in Wellington as my study of Wellington buildings. The reason why I have made this selection is because of my curiosity. The way this building appeals to me and attracts me in is its strange green façade exterior, hooked my eyes every time I walk pass Manners Street. The Telecom Building is located at 13 – 27 Manners Street, Te Aro, Wellington. After a quick online search, it was very easy to find out that the building…

New Mexico Military Institute, home of the Broncos and the little Colts, carries a tradition in which every student becomes a cadet in the Corps of Cadets. It holds some of the finest programs that can be taught such as Astronomy, Physics, Math, English, Choir, and Science. One course, in particular, is the Early Commissioning Program (ECP) of the SROTC department. There is even a tradition known as "RAT Week" in which newcomers must go through known as RAT Week. The ECP is independent aside…

When comparing both economics and psychology, it is true that both of the social sciences look at the behaviour of individuals and how they react to situations where they are faced to make a decision. However the way both of the two go about it is very different to a small extent. Economics defines rationality as consistent choices made by people to maximise their self interest and utility. It also assumes that people are able to make choices whilst processing all the information without…