A Critique of Orthodox Economics

Modern neoclassical economics is a theory of general equilibrium. It is based on highly unrealistic assumptions and yields a number of false predictions. The alternative model, presented in this book, uses a wider definition of technology, and emphasises the role of the entrepreneur as the primary agent of change. Because it takes time for firms to improve their technology, and to acquire the necessary finance for expansion, there are wide differences in firm sizes, and in their profitability. The competitive struggle to develop better technology raises the level of productivity of the whole economy, and leads to higher real incomes.

Autorentext

Harold Lydall is Research Associate at NILS at Flinders University.

Zusammenfassung
Because it takes time for firms to improve their technology, and to acquire the necessary finance for expansion, there are wide differences in firm sizes, and in their profitability. The competitive struggle to develop better technology raises the level of productivity of the whole economy, and leads to higher real incomes.

Inhalt
Preface The Causes of Economic Growth Neoclassical Theory Technology The Entrepreneur The Innovating Firm Product Differentiation Aggregate Analysis The Employment Limit Economic Development The Role of Government Summary: the Case for a New Approach References Index