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New Microeconomics
New Microeconomics
New Microeconomics
Macroeconomics
Several Paths
Mathematical
Partial Equilibrium
Alfred Marshall
General Equilibrium
Leon Walras
Distribution
Wilfredo Pareto
Non-Mathematical
Laissez-faire
Austrian Economics
Institutional
Thorstein Veblen
Mathematical
M a t h e m a t ic s a n d M ic r o e c o n o m ic s
A n o to in e
A u g u s tin
C o u rn o t
A lfr e d M a r s h a ll
L e o n W a lr a s
W ilfr e d o P a r e t o
Paul Samuelson
Samuelson-Hicks
The counterweight
Milton Friedman
The approach became known as the Chicago
School
Approach is Marshellian
Economics as an engine of analysis rather than
an abstract work of economic modeling
Gary Becker
Took the simple concept of maximization to
study a wide variety of issues
Modern Microeconomics
Utility still holds a strong position in the
undergraduate study but game theory is
slowly taking over at the graduate level
Pedagogy has created two different world:
undergraduate and graduate.A Paul
Samuelson legacy
Empirical Economics
Henry Moore
Used statistical procedures to test JB
Clarks marginal productivity theory of
wages, which predicted that MP=w
While there was problem with his analysis
the important aspect of it was the fact that
he used statistical tools
Henry Schultz
Noted that one got a different elasticity of
demand if we regressed quantity on price or
vice-versa
The importance here is that statistical
measurement is not separate from theory
Macroeconomics
Henry Moore
Trade cycles related to weather cycles
Heterodox Empiricist
Wesley C. Mitchell
Institutionalist
Saw statistics not as a way of testing economic
theories
Instead he saw theories as the stories one would
give to explain empirical observations
Initial approach of the National Bureau of
Economic Research (NBER)
Simon Kuznets
Student of Mitchell
Developed the modern national income
accounting
Econometrics
E. J. Working first discussed the
identification problem. If one correlates
price and quantity does one get demand or
supply
Ragnar Frisch and Jan Tinbergen develop
first macroeconomic models
System of equations
Trygve Haavelmo
Cowles Commission
Alfred Cowles, wealthy investment advisor,
sponsored a commission in 1932 to use
Trygve Haavelmo approach to examine
economic issues
Commission was first set in Colorado
Springs, in 1937 moved to Chicago
In 1950s moved to YALE
Other Issues
Bayesian Econometrics
Experimental Economists