Abstract: This paper presents an exercise developing a long run general equilibrium model. The fully developed example shows that models developed on neoclassical premises need not support the neoclassical conceptions of prices as reflecting relative scarcities and of substitution as characterizing comparisons of equilibria. Also, certain stability problems are indicated. The conclusion is that...

A ustrian economics has been important to the development of modern economics, but its role in current practice is much diminished. The neoclassical approach dominates today’s thinking. Many Austrians bemoan this state of affairs; most neoclassical economists just ignore it. But Austrian and neoclassical economics aren’t mutually exclusive. Each represents a distinctive point of view, although ...

Neoclassical theory postulates that preferences between two goods are independent of the consumer’s current entitlements. Several experimental studies have recently provided strong evidence that this basic independence assumption, which is used in most theoretical and applied economic models to assess the operation of markets, is rarely appropriate. These results, which clearly contradict close...

This paper is a critical review of and a reader’s guide to a collection of papers by Robert E. Lucas, Jr. about fruitful ways of using general equilibrium theories to understand measured economic aggregates. These beautifully written and wisely argued papers integrated macroeconomics, microeconomics, finance, and econometrics in ways that restructured big parts of macroeconomic research. 1 Arro...

the radiation power loss from a magnetically confined plasma in a stellarator has been calculated using neoclassical particle and energy fluxes in an energy balance equation. we could obtain a power loss of about 34% of the total input power by numerical calculation. this fraction of the power loss has been found to be in good agreement with the experimentally measured values of 30-40% for our ...

E is witnessing the solid beginnings of a revolution in microeconomic theory. Research has demonstrated a need for boundedly rational models of firms and markets, and their potential for ascendancy into legitimate intellectual competition with neoclassical theory.1 The neoclassical research program, by which we mean the broad body of models and inferences based on the premise that all economic ...

Survey data are used to investigate the very long spending lags estimated in neoclassical studies of investment expenditures. Neoclassical investment theory has trouble explaining the length of these lags. By recognizing the Austrian concept of the capital structure and applying it to the problem, the present paper explains the length of these lags as proceeding from interactions between types ...