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The essay explores the foundational concepts of the neoclassical school of economics, established by WS Jevons and L. Walras in the 1870s. It highlights a key distinction from classical economics: the neoclassical approach emphasizes utilitarianism, viewing individuals as rational actors seeking to maximize satisfaction and utility. Consumers aim to find the optimal combination of goods for maximum pleasure, while producers focus on profit maximization. Additionally, it posits that the value of goods is determined by the satisfaction they yield, rather than the labor invested in them.
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New Classical economists. Why do New Classical economists believe that economic policy is ineffective?, Fotini Mastroianni
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- 2017
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