A Critique of Orthodox Economics: An Alternative Model

By Harold Lydall

Modern, neoclassical economics is a theory of general equilibrium, based on assumptions of perfect competition, perfect knowledge of existing technology, and timeless-static-adjustment. Although useful for some purposes, this theory suffers from serious defects, both in its assumptions and in its predictions. In particular, it fails to account for the growth of firms, for wide contemporary differences in technology between different firms and countries, and for the great sweep of economic development over the past two centuries. Its fundamental weakness is that it eliminates any role for the entrepreneur. In the alternative model presented in this book, there is perfect competition in parts of primary industry, but not in the markets for most manufactures and services, nor in the supply of finance. Technology is much wider than in the standard concept of the production function, covering all aspects of organization, including methods of efficient large-scale operation. The model provides a key to the problems of economic development of poor countries and of unemployment in rich countries.

• Format: Hardcover
• Language: English
• ISBN: 0312211430
• ISBN13: 9780312211431
• Release Date: March 1998
• Publisher: Palgrave Macmillan
• Length: 190 Pages
• Weight: 0.90 lbs.
• Dimensions: 9.0" x 0.8" x 6.0"