Neoclassical School (Economics)

The neoclassical school of economics is closely related to the synthesis done by Paul A. Samuelson in the book Foundations of Economic Analysis (1947).  The neoclassical theory sees individual behavior as „rational“, that is, individuals seek self-interest and have specific goals that they try to achieve in the most efficient way possible. In order to achieve their goals individuals and companies maximize something- utility, profit, etc. Neoclassical economics focuses on the analysis of equilibrium and price mechanisms as e means of connecting economic individuals. The neoclassical models presuppose that prices have all the information and give all the incentives for buyers and sellers. Other notable neoclassical economists are John Hicks, Franco Modigliani, and James Tobin.

Books:

Samuelson, A. Paul. Foundations of Economic Analysis (1947);

     -     Economics: An Introductory Analysis (1948). 

 

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