Neo-classical theory (19TH CENTURY)

Influenced by classical economic theory, neo-classical theory developed after World War II in opposition to the Cambridge School. It focuses on micro-economic theory and explores the conditions of static equilibrium.

Neo-classical theory is essentially concerned with the problems of an economy enjoying equilibrium at full employment.

The neo-classical theory is also concerned with savings-determined investment, marginal utility and marginal rates of substitution.

Leading adherents and developers of the theory were John Bates Clark (1884-1963), Francis Edgeworth (1845-1926), Irving Fisher (1867-1947), Alfred Marshall (1842-1924), Vilfredo Pareto (1848-1923), Leon Walras (1834-1910), and Knut Wicksell (1851-1926).

Also see: neo-classical growth theory

Source:
J F Henry, The Making of Neoclassical Economics (London, 1990)

Neoclassical or neo-classical may refer to:

• Neoclassicism or New Classicism, any of a number of movements in the fine arts, literature, theatre, music, language, and architecture beginning in the 17th century
  • Neoclassical architecture, an architectural style of the 18th and 19th centuries
  • Neoclassical sculpture, a sculptural style of the 18th and 19th centuries
  • New Classical architecture, an overarching movement of contemporary classical architecture in the 21st century
  • in linguistics, a word that is a recent construction from New Latin based on older, classical elements
• Neoclassical ballet, a ballet style which uses traditional ballet vocabulary, but is generally more expansive than the classical structure allowed
• The “Neo-classical period” of painter Pablo Picasso immediately following World War I
• Neoclassical economics, a general approach in economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand
• Neoclassical realism, theory in international relations
• Neo-classical school (criminology), a school in criminology that continues the traditions of the Classical School within the framework of Right Realism
• Neo-classical theology, another name for process theology, a school of thought influenced by the metaphysical process philosophy of Alfred North Whitehead
• Neoclassical transport is an effect seen in magnetic fusion energy reactors