Very much different indeed! In point form, allow S = Schumpeterian and N = Neoclassical economics
Role of markets:
N = As a mechanism for allocating factors of production
S = As dynamic mechanisms for coordinating and distributing knowledge to economic agents
Role of government
N = Government can help to boost the economy; intervention is okay
S = Minimal government intervention; the market can take care of everything.
Economy:
N = A static economy
S = An economy that is never, and never can be static
Role for entrepreneurship and innovation:
N = Zero. All knowledge, opportunities, etc are assumed to be present
S = HEAPS! It is entrepreneurship and innovation that contributes to changes in the knowledge base of an economy and thus economic growth
These are just four categories of differences. For the interested people who enjoy breaking away for the norm of neoclassical economics, have a browsy-browse at the articles in the Journal of Evolutionary Economics*.
*Schumpeterian economics is otherwise also known as evolutionary economics; Austrian economics.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment