The neoclassical school is the mainstream school of thought in economics, deriving from the work of the Marginalists, who defined value in relation to scarcity and regarded the balance of supply and demand as determining equilibrium prices. This method was first applied in microeconomics and used to describe the utility and profit-maximizing behaviour of individuals and firms. The neoclassical approach was set out by Alfred Marshall in his Principles of Economics, published in 1890; modern microeconomic textbooks remain remarkably similar to this work. The application of neoclassical principles to macroeconomics has been somewhat slower, since it was not immediately accepted that economic aggregates reflect the sum of individual choices. However, the development of general equilibrium theory has enabled neoclassical macroeconomists to conform to a similar pattern to that earlier established in microeconomics. Research Neoclassical School
Abbreviations
Money
Research Neoclassical School