X-Nico

2 unusual facts about neoclassical economics


Avner Offer

Offer's most recent work, The Challenge of Affluence: Self-Control and Well-Being in the United States and Britain since 1950, represents to some extent a challenge to Neoclassical economics.

Intra-industry trade

Krugman argues that economies specialise to take advantage of increasing returns, not following differences in regional endowments (as contended by neoclassical theory).


Black–Scholes model

Espen Gaarder Haug and Nassim Nicholas Taleb argue that the Black–Scholes model merely recast existing widely used models in terms of practically impossible "dynamic hedging" rather than "risk", to make them more compatible with mainstream neoclassical economic theory.

Mesoamerican Society for Ecological Economics

After the second biennial meeting of the International Society for Ecological Economics in 1994 at San José, Costa Rica, several professionals in the region became interested in creating a branch of this organization in their own countries to respond to the increasing development and worsening of social-environmental conflicts by the conventional-economics-based policies.


see also

Classical economics

Some classical ideas are represented in various schools of heterodox economics, notably Marxian economics – Marx being a contemporary of the classical economists and their immediate successors – and Austrian economics, which split from neoclassical economics in the late 19th century.

Criticisms of the labour theory of value

Neoclassical economics also follows this lead  — and that of Jevons, Menger, and Walras — from the 1870s and discards the LTV in favour of general equilibrium theory, which determines prices based on the interaction of preferences, technology and endowments through supply and demand.