Post Keynesian price theory with a Schumpeterian twist
Price theory is at the core of neoclassical economics. It provides the linkages among the analyses of production, consumption and distribution as well as the basis for welfare theorems about the efficiency of competitive markets. Yet, it is based on the achievement of general equilibrium with assump...
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| Format: | Book Chapter |
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2016
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| Online Access: | http://hdl.handle.net/20.500.11937/37350 |
| Summary: | Price theory is at the core of neoclassical economics. It provides the linkages among the analyses of production, consumption and distribution as well as the basis for welfare theorems about the efficiency of competitive markets. Yet, it is based on the achievement of general equilibrium with assumptions of individual optimization and perfect information that are acknowledged as unrealistic. Nonetheless, neoclassical economists insist on the relevance of the theory for understanding economic development and for the formulation of public policy. |
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