Neoclassical economics

The hypothesis is altogether neoclassical and at its center expect the model of flawless rivalry from which the Washington Consensus draws its center contentions (Toye, 1993). In extremely basic terms the hypothesis expresses that, dealing with the premise of general harmony, "if" an economy…

The axiom used by the neoclassical schools of economics follows Jeremy Bentham’s emphasis on additivity and quantification. Thus, Keynes’s reference to Euclidean, non-Euclidean, and the axiom of parallels (Keynes, GT; 1936, p.16) is actually a contrast between additivity and non-additivity. Keynes’s axiom of non additivity can be contrasted with the neoclassical axiom of additivity. All of the neoclassical results, such as neutrality of money and gross substitutes…

making when they participate in the financial market. This phenomenon gives a shock to rational assumptions related to the traditional economic theory. For figuring out the principles and motivations behind decision-making process, behavioral economics has been widely discussed more than ever. Endowment effect, as one of economic phenomenon, arises from economic activities affecting preference and value construction (Ariely and Norton, 2008; Willemsen et al.2011). This essay explains what the…

In the United States, a country that is such an economically dominant power, there are many debates concerning economic policy. From republican to democratic and classical to keynesian, politicians often propose different ideas from each other. A prime example of a clash of economic policies are the current presidential candidates, Hillary Clinton and Donald Trump. Clinton’s economic proposals center around increasing taxes for the wealthy and expanding Social Security. However, Trump proposes…

an international outlook is apparent. The essay will discuss the motives and reasons of internationalization and draw on literature from mainstream and alternative theories. The essay will first discuss the efficiency-seeking theories, including neoclassical trade theories and mainstream theories. It will be followed by the interpretation of strategic theories. The last section will particularly concentrate on the role of nation-state…

the main concern of Fred Bateman and Thomas Weiss’ 1981 book, A Deplorable Scarcity: The Failure of Industrialization in the Slave Economy. Drawing from census information gathered in the 1850s and 1860s, they attempt to reason an explanation via economic analysis for why the South fell behind the North in industrialization as well as many other qualitative measures such as literacy, immigration and educational infrastructure. I believe that it is necessary to discuss these failings…

models as well as one of the key extensions of the neoclassical model. Since the term ‘human capital’ refers principally to workers’ acquisition of skills and know-how through education and training, the majority of studies have measured the quality of human capital using proxies related to education (such as, school-enrolment rates). A large number of studies has found evidence suggesting that educated population is a key determinant of economic growth (Barro, 1991; Mankiw et. al., 1992; Barro…

Overall, Becker’s theory of time allocation is considered as an influential contribution in the field of the New Home Economics. According to Chiaporri and Lewbel (2015) Becker’s time allocation theory can be considered as revolutionary as he does not perceive consumption and leisure as separate activities, that provide utility only in a disconnected way. However, according to Beblo (2002) the approach is subject to several critiques. So, Beblo (2002) argues that Becker’s (1965) assumes all…

its own self-interest, and in turn act upon that self-interest. Economists have traditionally used the concept to describe a rational individual who quantifies their self-interest while enjoying true economic freedom. These concepts were central to Adam Smith’s notion of the invisible hand and economic efficiency. According to Smith, the most efficient economies are those that allow individuals the freedom to pursue their own self-interest free of government intervention (Ward, 104). Ian Ward,…

II. Brief description of the role that uncertainty plays in economic theory/models and contrast this perspective with the sociological account Since Knight (2005), the monetarist models use assumptions of perfect information and imperfect with respect to the future. With the emergence of imperfect information the economist stated that it can be predicted by stochastic variables (random) from the probabilistic point of view, one can calculate the costs and benefits of different actions present…