1 / 6

Chapter 14: The Development of Modern Microeconomic Theory

Chapter 14: The Development of Modern Microeconomic Theory. Questions for Review, Discussion, and Research 1, 2, 3, 4, 5, 6. Distinguishing Features. Not the elements or topics but the modeling approach

mvictoria
Download Presentation

Chapter 14: The Development of Modern Microeconomic Theory

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 14: The Development of Modern Microeconomic Theory Questions for Review, Discussion, and Research 1, 2, 3, 4, 5, 6

  2. Distinguishing Features • Not the elements or topics but the modeling approach • The assumptions and conclusions are less important than the empirical “fit” of a model to databases skip pp. 391-403

  3. Decline of Marshallian Economics • Partial equilibrium analysis was a workable theory that sought to answer ‘real world’ questions • Walked a fine line between • Historical and institutional approach • Formalists who believed that economics should be a science

  4. The latter reach apex at prestige in 1959 with the general equilibrium model of Arrow and Debreu

  5. Attributes of Neoclassical Approach • Focuses on the efficient allocation of economic resources (inputs) and outputs in product markets • Accepts some variation of utilitarianism • Focuses on marginal tradeoffs

  6. 4. Assumes far sighted rationality 5. Accepts methodological individualism 6. Structured around general equilibrium concepts

More Related