Neoclassical economics

Neoclassical economics is an approach to economics in which the production, consumption, and valuation (pricing) of goods and services are observed as driven by the supply and demand model.[1][2] According to this line of thought, the value of a good or service is determined through a hypothetical maximization of utility by income-constrained individuals and of profits by firms facing production costs and employing available information and factors of production. This approach has often been justified by appealing to rational choice theory,[3] a theory that has come under considerable question in recent years.

Part of a series on
Capitalism
Concepts Austerity Business Business cycle Businessperson Capital Capital accumulation Capital markets Company Corporation Competitive markets Economic interventionism Economic liberalism Economic surplus Entrepreneurship Fictitious capital Financial market Free price system Free market Goods and services Investor Invisible hand Visible hand Liberalization Marginalism Money Private property Privatization Profit Rent seeking Supply and demand Surplus value Value Wage labour
Economic systems Anglo-Saxon Authoritarian Corporate Dirigist Free-market Humanistic Laissez-faire Liberal Libertarian Market Mercantilist Mixed Monopoly State National Neoliberal Nordic Private Raw Regulated market Regulatory Rhine Social State State-sponsored Welfare
Economic theories American Austrian Chartalism MMT Chicago Classical Institutional Keynesian Neo- New Post- Market monetarism Critique of political economy Critique of work Marxist Monetarist Neoclassical New institutional Supply-side
Origins Age of Enlightenment Capitalism and Islam Commercial Revolution Feudalism Industrial Revolution Mercantilism Primitive accumulation Physiocracy Simple commodity production
Development Advanced Consumer Community Corporate Crony Finance Global Illiberal Late Marxist Merchant Progressive Rentier State monopoly Technological
People Adam Smith John Stuart Mill David Ricardo Thomas Robert Malthus Jean-Baptiste Say Karl Marx Milton Friedman Friedrich Hayek John Maynard Keynes Alfred Marshall Vilfredo Pareto Leon Walras Ludwig von Mises Ayn Rand Murray Rothbard Joseph Schumpeter Thorstein Veblen Max Weber Ronald Coase
Related topics Capitalist realism Capitalist state Consumerism Cronyism Culture of capitalism Evergreening Globalization History History of theory Market economy Periodizations of capitalism Perspectives on capitalism Post-capitalism Speculation Spontaneous order Venture philanthropy
Ideologies Anarcho Authoritarian Classical liberalism Democratic Dirigisme Eco Humanistic Inclusive Liberal Liberalism Libertarian Neo Neoliberalism Objectivism Ordoliberalism Privatism Right-libertarianism Third Way
Criticism Anti-capitalism Crisis theory Criticism of capitalism Critique of political economy Critique of work Exploitation of labour Wage slavery
Capitalism portal  Business portal
v t e

Neoclassical economics historically dominated macroeconomics[4] and, together with Keynesian economics, formed the neoclassical synthesis which dominated mainstream economics as "neo-Keynesian economics" from the 1950s to the 1970s.[5] It competed with new Keynesian economics as new classical macroeconomics in explaining macroeconomic phenomena from the 1970s until the 1990s, when it was identified as having become a part of the new neoclassical synthesis along with new Keynesianism. There have been many critiques of neoclassical economics, some of which have been incorporated into newer versions of neoclassical theory, whilst some remain distinct fields.