The question one must ask though is what is the basis for David's thesis concerning the humanitarian paradigm given that neoclassical economics
as neo-liberal economics is the major theory appealed to by those who declare themselves experts on economic development?
Commons and associates rejected neoclassical economics
also on quasi-ethical grounds.
Accordingly, neoclassical economics
positions itself as a science and claims objectivity in order to reify its standing and exert its power.
The book rightly offers no panaceas for poverty in the developing world; its message instead is that solutions to social and economic problems are intertwined, and require careful analysis of particular circumstances and social interests rather than the procrustean prescriptions of neoclassical economics
Yet, in an important way, neoclassical economics
can be classified in this group, too--as profoundly romantic as well as profoundly reductionist.
The upshot of this economic sophistication in the earlier chapters is an ability to begin questioning the often unrealistic assumptions of neoclassical economics
as they inform antitrust law.
In terms of the theory of the firm and industry, neoclassical economics
has been confronted by two failures.
begins with the premises of private property and self-interest.
But Hayek also offered a far more profound critique of the limits of human reason, which extended to the models that would come to underlie postwar American neoclassical economics
and, thus, the economics that we teach university students to this day.
Economics, as understood by most lawyers, is far removed from calculations and equations used by econometricians, but as a field, American law accepts the notion that neoclassical economics
is a way to understand and assess human decisions, particularly choices of risks and benefits.
The author also takes a dim view of neoclassical economics
and the "rational expectations" approach to macroeconomics.
The current dominant paradigm influencing academic thought and government economic policy, neoclassical economics
, focuses on the market forces that effect economic exchange.