background and theories of 4 economists are as follow

8/8/2019 Background and Theories of 4 Economists Are as Follow

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According to Smith the institutions most appropriate to a period of commercial interdependence

would provide for the governing authority to pursue a laissez faire (let alone) policy in relation to

the economy. Smith justified this by arguing that people, through applying their talents and assets

where they contributed to the production of the things potential buyers wanted, sought to earnmonies. Under laissez faire systems individuals, acting in their own self-interest as economic

agents, would tend to dedicate themselves to those economic activities that brought them thegreatest reward in terms of income be it in the form wages, rent, or profit. Smith showed that by

giving themselves to such highly rewarding economic activities in their own self interest people

would also be maximizing the economic well-being of society.

According to Smith the institutions most appropriate to a period of commercial interdependence

would provide for the governing authority to pursue a laissez faire (let alone) policy in relation to

the economy. Smith justified this by arguing that people, through applying their talents and assets

where they contributed to the production of the things potential buyers wanted, sought to earn

monies. Under laissez faire systems individuals, acting in their own self-interest as economic

agents, would tend to dedicate themselves to those economic activities that brought them the

greatest reward in terms of income be it in the form wages, rent, or profit. Smith showed that by

giving themselves to such highly rewarding economic activities in their own self interest peoplewould also be maximizing the economic well-being of society.


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Alfred Marshall:Full Name: Alfred Marshall

Born: July 26, 1842(London, England)

Died: July 13, 1924, Cambridge.

Era: Neo Classical Period.

Alfred Marshall was born in July 26, 1842, London, England and died in July 13, 1924,

Cambridge, Cambridge shire) British economist, one of the founders of English neoclassical

economics. The first principal of University College, Bristol (1877 81), and a professor at the

University of Cambridge (1885 1908). In 1868 Marshall's college, St. John's, established a

special lectureship for him in moral science. In 1875 he returned from a study of trade protectionin the United States to attempt to make political economy a serious subject at Cambridge. The

English economist Alfred Marshall (1842-1924) was the founder of the "new economics." Herejected the traditional definition of economics as the "science of wealth" to establish a discipline

concerned with social welfare. Alfred Marshall is considered one of two contenders for the title

of father of neoclassical microeconomic theory.

Neoclassical economics : Overview:

Neoclassical economics is the singular element encompassing several schools of thought in

economics address. There is not a complete agreement on what is meant by neoclassical

economics, and the result is a wide range of neoclassical approaches to various problem areas anddomains -- ranging from neoclassical theories of labor to neoclassical theories of demographic

changes. As expressed by E. Roy Weintraub, neoclassical economics rests on three assumptions,

although certain branches of neoclassical theory may have different approaches:

1. People have rational preferences among outcomes that can be identified and associatedwith a value.

2. Individuals maximize utility and firms maximize profits.

3. People act independently on the basis offull and relevant information.

From these three assumptions, neoclassical economists have built a structure to understand the

allocation of scarce resources among alternative ends -- in fact understanding such allocation is

often considered the definition of economics to neoclassical theorists. Here's how William

Stanley Jevons presented "the problem of Economics".

"Given, a certain population, with various needs and powers of production, in possession ofcertain lands and other sources of material: required, the mode of employing their labour which

will maximize the utility of their produce."[7]

From the basic assumptions of neoclassical economics comes a wide range of theories about

various areas of economic activity. For example, profit maximization lies behind the neoclassical

theory of the firm, while the derivation ofdemand curves leads to an understanding ofconsumer

goods, and the supply curve allows an analysis of the factors of production. Utility maximization

is the source for the neoclassical theory of consumption, the derivation of demand curves for
http://www.economictheories.org/2008/08/alfred-marshall-neoclassical-economics.htmlhttp://www.economictheories.org/2008/08/alfred-marshall-neoclassical-economics.htmlhttp://www.answers.com/topic/lectureshiphttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/E._Roy_Weintraubhttp://en.wikipedia.org/wiki/Rational_choice_theoryhttp://en.wikipedia.org/wiki/Utility_maximizationhttp://en.wikipedia.org/wiki/Profit_maximizationhttp://en.wikipedia.org/wiki/Information_asymmetryhttp://en.wikipedia.org/wiki/William_Stanley_Jevonshttp://en.wikipedia.org/wiki/William_Stanley_Jevonshttp://en.wikipedia.org/wiki/Neoclassical_economics#cite_note-6http://en.wikipedia.org/wiki/Theory_of_the_firmhttp://en.wikipedia.org/wiki/Demandhttp://en.wikipedia.org/wiki/Consumer_goodhttp://en.wikipedia.org/wiki/Consumer_goodhttp://en.wikipedia.org/wiki/Consumer_goodhttp://en.wikipedia.org/wiki/Supply_(economics)http://en.wikipedia.org/wiki/Factors_of_productionhttp://www.economictheories.org/2008/08/alfred-marshall-neoclassical-economics.htmlhttp://www.economictheories.org/2008/08/alfred-marshall-neoclassical-economics.htmlhttp://www.answers.com/topic/lectureshiphttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/E._Roy_Weintraubhttp://en.wikipedia.org/wiki/Rational_choice_theoryhttp://en.wikipedia.org/wiki/Utility_maximizationhttp://en.wikipedia.org/wiki/Profit_maximizationhttp://en.wikipedia.org/wiki/Information_asymmetryhttp://en.wikipedia.org/wiki/William_Stanley_Jevonshttp://en.wikipedia.org/wiki/William_Stanley_Jevonshttp://en.wikipedia.org/wiki/Neoclassical_economics#cite_note-6http://en.wikipedia.org/wiki/Theory_of_the_firmhttp://en.wikipedia.org/wiki/Demandhttp://en.wikipedia.org/wiki/Consumer_goodhttp://en.wikipedia.org/wiki/Consumer_goodhttp://en.wikipedia.org/wiki/Supply_(economics)http://en.wikipedia.org/wiki/Factors_of_production


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consumer goods, and the derivation of labor supply curves and reservation demand[8]. Market

supply and demand are aggregated across firms and individuals. Their interactions determine

equilibrium output and price. The market supply and demand for each factor of production is

derived analogously to those for market final output to determine equilibrium income and the

income distribution. Factor demand incorporates the marginal-productivity relationship of thatfactor in the output market.

According to Marshall, demand and supply can be conceived of as the two blades of a pair of

scissors: each blade plays a role in cutting. Demand for a good is based on the law of diminishing

marginal utility, and the amount of money a person is willing to pay reflects his or her utility at

the margin (see marginal analysis). It is the existence of this measure, Marshall argued, thatmakes economics more exact than other social sciences. One of Marshall's principal

achievements was the diagrammatic and mathematical analysis of the elasticity of demand, which

describes the sensitivity of demand to price changes. This has proved an invaluable tool for manykinds of economic analysis, such as determining the effects of taxes on different goods. Unlike

most marginalists, Marshall considered supplyas determined by the cost of productiona

central component of economic analysis. Since the amount produced depends on the effort of

workers, supply increases as prices (and therefore wages) increase. Marshall was the first to

recognize that market price is determined by the interaction of demand and supply and that thereis an important temporal dimension to this process. In general, the shorter the time period

considered, the greater the effect of demand on price. The longer the period, the bigger the effect

of the cost of production, and therefore of supply. This is because changes in the cost of

production take longer to affect the economy than do changes in demand.

Marshall's work concentrated onpartial equilibrium: it looked at only one sector of the economyat a time. For this reason, he had little to say about aggregate economic issues like business

cycles. Still, the methodological tools he introduced, such as the diagrammatic determination of

market price and the concept of the representative firm (which is neither the most efficient nor the

most inefficient in its market) have shaped aggregate analysis as well.
http://en.wikipedia.org/wiki/Reservation_pricehttp://en.wikipedia.org/wiki/Reservation_pricehttp://en.wikipedia.org/wiki/Neoclassical_economics#cite_note-7http://bea.gov/bea/glossary/glossary.cfm?key_word=Final_use&letter=F#Final_usehttp://en.wikipedia.org/wiki/Production,_costs,_and_pricinghttp://social.jrank.org/pages/2399/marginal-analysis.htmlhttp://en.wikipedia.org/wiki/Reservation_pricehttp://en.wikipedia.org/wiki/Neoclassical_economics#cite_note-7http://bea.gov/bea/glossary/glossary.cfm?key_word=Final_use&letter=F#Final_usehttp://en.wikipedia.org/wiki/Production,_costs,_and_pricinghttp://social.jrank.org/pages/2399/marginal-analysis.html


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Lionel Charles Robbins:Full Name: Lionel Charles Robbins

Birth: November 1898 (England)

Died: May 1984)

Institution: London School of economics

Lionel Charles Robbins, Baron Robbins, was born in November 1898 and was died in 15 May

1984). He was a British economist and head of the economics department at the London School

of Economics.

Theories and influences:

Robbins is famous for his definition of economics:

"Economics is a science which studies human behavior as a relationship between ends

and scarce means which have alternative uses."

A follower of William Stanley Jevons and Philip Wicksteed, he was influenced by the

Continental European economists. Robbins was very familiar with the work of economists in

Continental Europe.

Robbins' early essays were combative in spirit, stressing the subjectivist theory of value beyond

what Anglo-Saxon economics had been used to. He wrote a famous 1932 essay on economic

methodology. His work on costs (1930, 1934) brought Wieser's "alternative cost" theorem ofsupply to England (which was opposed to Marshall's "real cost" theory of supply). His critique of

the Marshallian theory of the representative firm (1928), and his critique of the Pigovian Welfare

Economics (1932, 1938), influenced the end of the Marshallian empire.

In hisEssay on the Nature and Significance of Economic Science, Robbins made his Continentalcredentials clear. Redefining the scope of economics to be "the science which studies human

behavior as a relationship between ends and scarce means which have alternative uses" (Robbins,

1932).

List of works :

"Principles Of Economics", 1923, "Economics" "Dynamics of Capitalism", 1926,Economica.

"The Optimum Theory of Population", 1927, in Gregory and Dalton, editors,London

Essays in Economics.

"The Representative Firm", 1928,EJ.

"On a Certain Ambiguity in the Conception of Stationary Equilibrium", 1930,EJ.

Essay on the Nature and Significance of Economic Science, 1932.
http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/London_School_of_Economicshttp://en.wikipedia.org/wiki/London_School_of_Economicshttp://en.wikipedia.org/wiki/William_Stanley_Jevonshttp://en.wikipedia.org/wiki/Philip_Wicksteedhttp://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/Subjectivisthttp://en.wikipedia.org/wiki/Arthur_Cecil_Pigouhttp://en.wikipedia.org/wiki/Welfare_Economicshttp://en.wikipedia.org/wiki/Welfare_Economicshttp://en.wikipedia.org/wiki/An_Essay_on_the_Nature_and_Significance_of_Economic_Sciencehttp://en.wikipedia.org/wiki/An_Essay_on_the_Nature_and_Significance_of_Economic_Sciencehttp://en.wikipedia.org/wiki/Essay_on_the_Nature_and_Significance_of_Economic_Sciencehttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/London_School_of_Economicshttp://en.wikipedia.org/wiki/London_School_of_Economicshttp://en.wikipedia.org/wiki/William_Stanley_Jevonshttp://en.wikipedia.org/wiki/Philip_Wicksteedhttp://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/Subjectivisthttp://en.wikipedia.org/wiki/Arthur_Cecil_Pigouhttp://en.wikipedia.org/wiki/Welfare_Economicshttp://en.wikipedia.org/wiki/Welfare_Economicshttp://en.wikipedia.org/wiki/An_Essay_on_the_Nature_and_Significance_of_Economic_Sciencehttp://en.wikipedia.org/wiki/Essay_on_the_Nature_and_Significance_of_Economic_Science


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"Remarks on the Relationship between Economics and Psychology", 1934, Manchester

School.

"Remarks on Some Aspects of the Theory of Costs", 1934,EJ.

The Great Depression, 1934. Scroll to chapter-preview links.

"The Place of Jevons in the History of Economic Thought", 1936, Manchester School.

"Interpersonal Comparisons of Utility: A Comment", 1938,EJ.

The Economic Causes of War, 1939. The Economic Problem in Peace and War, 1947.

The Theory of Economic Policy in English Classical Political Economy, 1952.

Robert Torrens and the Evolution of Classical Economics, 1958.

Politics and Economics, 1963.

The University in the Modern World, 1966.

The Theory of Economic Development in the History of Economic Thought, 1968.

Jacob Viner: A tribute, 1970.

The Evolution of Modern Economic Theory, 1970.

Autobiography of an Economist, 1971.

Political Economy, Past and Present, 1976.

Against Inflation, 1979.

Higher Education Revisited, 1980. "Economics and Political Economy", 1981,AER.

A History of Economic Thought: the LSE Lectures, edited by Warren J. Samuels andSteven G. Medema, 1998.
http://books.google.com/books?hl=en&lr=&id=Ar2osFxNDJgC&oi=fnd&pg=PR13&dq=monetary+economics+%22great+financial+crisis%22&ots=TBHMC5KPw-&sig=XNpb2j6SFR0ogt2hct6wpxLGNXk#v=onepage&q&f=falsehttp://books.google.com/books?hl=en&lr=&id=Ar2osFxNDJgC&oi=fnd&pg=PR13&dq=monetary+economics+%22great+financial+crisis%22&ots=TBHMC5KPw-&sig=XNpb2j6SFR0ogt2hct6wpxLGNXk#v=onepage&q&f=false


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J. M. Keynes:Full Name: John Maynard Keynes.

Born: 5 June 1883 (Cambridge)Died: April 1946 Firle, East Sussex, England

John Maynard Keynes, 1st Baron Keynes,was born in 5 June 1883 and was died in 21 April

1946). He was a British economist whose ideas have profoundly affected the theory and practice

ofmodern macroeconomics, as well as the economic policies of governments. He identified the

causes ofbusiness cycles, and advocated the use offiscal and monetary measures to mitigate theadverse effects of economic recessions and depressions. His ideas are the basis for the school of

thought known as Keynesian economics, and its various offshoots.

Keynesian Economics Theory:

Keynes stated that if Investment exceeds saving, there will be inflation. If Saving exceeds

Investment there will be recession. One implication of this is that, in the midst of an economic

depression, the correct course of action should be to encourage spending and discourage saving.

This runs contrary to the prevailing wisdom, which says that thrift is required in hard times. In

Keynes's words, "For the engine which drives Enterprise is not Thrift, but Profit."

-Keynes took issue with Say's Law - one of the economic "givens" of his era. Say's Law statesthat supply creates demand. Keynes believed the opposite to be true - output is determined by

demand.

-Keynes argued that full employment could not always be reached by making wages sufficiently

low. Economies are made up of aggregate quantities of output resulting from aggregate streamsof expenditure - unemployment is caused if people don't spend enough money.

-In recessions the aggregate demand of economies falls. In other words, businesses and people

tighten their belts and spend less money. Lower spending results in demand falling further and a

vicious circle ensues of job losses and further falls in spending. Keynes's solution to the problem

was that governments should borrow money and boost demand by pushing the money into the

economy. Once the economy recovered, and was expanding again, governments should pay back

the loans.

-Economically and socially successful economies have significant contributions from both the

government and the private sectors.

-Keynes's view that governments should play a major role in economic management marked abreak with the laissez-faire economics of Adam Smith, which held that economies function best

when markets are left free of state intervention.
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background and theories of 4 economists are as follow

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